The Morrison government’s iconic $158 billion income tax relief program was passed in Congress. On Thursday night, the three-stage program was approved by the Senate after being supported by a neutral member. From July 2024, people with an annual income between 45,000 yuan and 200,000 yuan will enjoy a 30% tax rate. On Thursday night, the Senate passed a package of tax cuts with 59 votes to 9. The Alliance, Labour and four neutrals voted to support the plan. The basic annual salary of the nine Green Party senators who voted against it was 207,100 yuan. They are Richard Di Natale, Larissa Waters, Dr Mehreen Faruqi, Jordon Steele-John, Rachel Siewart, Janet Rice, Nick McKim, Sarah Hanson-Young and Peter Whish-Wilson. In the coming months, the first phase of the program will provide a maximum of $1,080 for tax returns for low- and middle-income earners.
The second phase will fill the tax deduction for low-income earners, which means that people who earn less than 45,000 yuan (instead of 41,000 yuan) will enjoy a 19% tax rate. In the final stage, the income of people between 45,000 yuan and 200,000 yuan will be reduced from 32.5% to 30%. Prime Minister Scott Morrison, Finance Minister Josh FRydenberg and Finance Minister Matthias Cormann said in a statement that the package would ease the pressure on millions of Australians. The joint statement said that the coalition government fulfilled the commitments made in this year’s budget and will establish a better tax system to provide more tax relief for hard-working Australians. “Therefore, the money earned by low- and middle-income earners will be able to save more and the money in the pocket will be more. This will eventually promote household consumption and benefit the overall economy.” On Tuesday evening, the House passed a total of 158 billion After a three-hour debate, the Labor Party failed to advance the second phase of the plan from 2022 to 2019. On Thursday, opposition party leader Anthony Albanese has lowered his opposition to the comprehensive relief program after questioning which projects and services need to be cut to fund the third phase. Although Morrison confirmed that he would not cut any projects, Albanes said that the Prime Minister’s promise “lack of credibility.”
The Labour Party has always hoped to persuade the neutral legislator to support the amendment, so that the second phase can be carried out earlier and the third phase will be voted later. The Labour Party argues that the third phase, set in 2024/25, is too far away from the decision now made by Congress. Finance Minister Josh FRydenberg promised that the funds will be in place as soon as possible. He said, “If the bill is passed this week, the staff of the Australian Taxation Office (ATO) are ready, and people can get the money as soon as next week.” “Once they filed a tax return, that is, If they submit it next week, they will receive the money in a few days.” For those who have applied for a tax return, they can now take a reassurance because the money is already properly.