Budget will rely more on income tax but Treasurer says there’s nothing to worry about
The Parliamentary Budget Office (PBO) is warning the federal budget will become more reliant on income tax receipts in the coming years, but the Federal Treasurer says the findings are nothing to worry about.
According to trends identified in the PBO’s report, the budget will see heavier reliance on personal income taxes as other revenue sources decline.
Treasurer Scott Morrison says the government is well aware of the trends and measures are in place to protect against them.
He tells Ben Fordham the federal government’s $144-billion income tax cut package, which passed the Senate earlier this year, is one of those measures.
“That’s one of the reasons why we passed those laws, to reduce the tax burden to people… because we knew bracket creep was going to be taking money out of people’s pockets.
“We could see that trend already occurring and that’s why we took that action.”
When asked how the government will make up for lost revenue from sources including company tax receipts, Mr Morrison says a plan is already in place.
“We do what we’ve got set out in the budget. The budget already factors in all the things that were already noted in that report.”
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