Why Australia Won’t Be Getting Its Promised 2016 Tax Cuts

Many Australians may agree with me on this that the Turnbull Government's only cherry on the cake was the income tax cuts that were promised to be delivered by the 1st July 2016. Yet, as we have all now witnessed, the tax cuts for higher earning Australians are on hold leaving three million voters in tax limbo.

The annoying thing was that when handing down the May Budget, the Coalition government promised a small break on income tax for Australians earning over $80,000 per year. If you weren’t aware, the proposal specified that the income rate at which people paid 32.5% tax would be raised from $80,000 to $87,000. This change would have provided over three million Australians a $6 per week relief, however in the end it doesn't look like it's going to happen.


Australian Budget 2016-17The frustration sits around the fact that the tax break was meant to come into effect on the 1st July 2016, but we all have Prime Minister Malcolm Turnbull  to thank who allowed his eagerness to get to the polls to get in the way of allowing enough time for required legislation to pass. On the 9th May 2016, the government assumed an autopilot role at which time relevant legislation for small business tax cuts were not implemented. These planned changes will be something that the new government have to decide upon now.

The Australian Tax Office said that these new measures would have to be legislated by the incoming government, whilst Mr Turnbull at the time said his government would prioritise the tax cuts if he were elected.

Frustration will also be felt amongst the small and medium sized business community, because they too were supposed to receive a tax cut down to 27.5% on 1st July 2016 along with another year to claim instant deductions for equipment purchases up to $20,000.


If you are still unsure about what to think then take note of the fact that the Australian Tax Office announced that small business tax rates will be based on the existing law and if any changes are made then we will be updated accordingly. Things seem as if they have gone from bad to worse, as it also sounds like higher electricity prices are due to be rolled out to the tune of 10% across NSW and an extra $3.43% in Tasmania.

If this news turns your stomach then start eating plenty of vitamin C because the cost of an Ambulance call out also increased to $364 with an additional $3.29 added to each kilometre driven. It may be a little easier to avoid the hospital now though since lockout laws will be enforced in Queensland with reduced liquor service hours and a restriction on serving alcohol shots, spirits and pre-mixed drinks after midnight.


Australians annoyed about Tax breaks not being implemented as promised

Southern Australia have their own laws to worry about as smokers will be banned from sparking up in alfresco dining venues at all pubs across the state, including clubs, cafes, restaurants and fast food outlets. Many will rejoice at this news but some of those non-smoking Southern Australians may be unhappy to learn that increased medical expenses will affect the workers’ compensation scheme to cut out their benefits.

There is light at the end of the tunnel however, because hundreds of thousands of disabled people, their families and carers across Australia will begin to receive more support, a direct result of the new National Disability Insurance Scheme.

Northern Territory Australians will be able to claim for 12 additional work-related diseases, which will now include hepatitis C and melanoma and they wont have to prove they were directly caused by their job. New motor vehicle insurance laws will also mean that people who were catastrophically injured during accidents in Western Australia will be entitled to treatment, care and support for the rest of their lives.


Finally, on a lighter note, in Victoria any hoverboards that don’t meet new safety standards will be banned, whilst police have been given new powers to ban convicted criminals from associating with each other including via online channels.

Australian Tax Office announced small business tax rates

TOPICS:   Money

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