The administration will need to set a spending limit when it releases its first budget, the prime minister has acknowledged, but he has vowed not to roll back tax cuts.
While the federal budget will carry out the promises Labor made during the election, Anthony Albanese acknowledged there remained a significant fiscal repair task ahead.
However, he asserted that Labor will uphold the execution of income tax cuts previously enacted in 2024, which will provide a flat rate of 30% for individuals earning between $45,000 and $200,000.
Australians earning more than $120,000 who are now taxed at 37 per cent are set to benefit the most, with workers making $90,000 a year saving $1,125 and those on $200,000 more than $9,000 better off.
The Albanese Government has confirmed there will be another Federal Budget handed down on 25 October 2022, just months after Scott Morrison’s government delivered a Budget in March.
‘We’re going to have to really put the brakes on some of the spending which is there,’ Mr Albanese told the ABC’s 7.30 program.
‘We know that we’ve got the NDIS (which) has been growing, we know there are other pressures as well,’ he said.
‘We know they’ve got to be paid for, we know one way we can do that is to grow the economy, but we need to examine it and have that national discussion.’
Millions of taxpayers are set to benefit from tax cuts and receive government support when buying new homes.
Labor will support the implementation of the stage-three income tax cuts in 2024 which will create a flat rate of 30 per cent between $45,000 and $200,000.
The move mostly benefits those earning more than $120,000 who are currently taxed at 37 per cent.
A worker earning $90,000 a year could save an extra $1,125 on taxes while a resident earning $200,000 a year could enjoy another $9,075.
Labor will also honour the abolition of the Low and Middle Income Tax Offset.
Income earners on up to $126,000 have received the lower and middle income tax offset worth up to $1,080 a year each financial year since 2018-19.
The offset was supposed to terminate when stage two tax cuts took effect, however it was postponed by two years when the cutbacks were made effective in 2020 instead because of the pandemic.
Australians making up to $126,000 would pay up to $1,500 more in income tax in 2023 as a result of the termination of the rebate than they did this year.
After Labor abandoned its promises to revise the rate of JobSeeker, unemployed Australians receiving Centrelink benefits would be left behind.
During the 2019 election, Bill Shorten, a former leader of Labor, promised to set up a review of the allowance, but he later discreetly abandoned that plan.
Currently, a single individual makes $46 every day, or $642.70 per two weeks.
Treasury spokesman Andrew Leigh said his party had not ‘committed to an additional increase’.
Labor has dropped its 2019 policy to ban negative gearing, a major tax bonus for property investors which economists say pushes up house prices.
