Taxpayers have been deemed winners in the 2018 Budget with the Government’s seven-year plan to cut income taxes.

But the Australian Council of Social Service (ACOSS) has criticised the move. They argue that the tax offsets will not help low-income earners, who will only receive up to $4 a week.

“It is shameful that the Government has chosen to ignore the overwhelming consensus to help people on the lowest incomes, by increasing the woefully inadequate Newstart and student payments, as a matter of priority,” says Dr Cassandra Goldie, ACOSS CEO.

The advocacy group also says the revenue cap of 23.9% to GDP is a “damaging fiscal straitjacket”. Since Australia is already one of the lowest taxing countries in the OECD, the tax cuts risk hindering the delivery of essential services.

“The harshest change in this budget affects some of the most vulnerable people in the community: new migrants lacking paid work, who will be left without income support for the first four years. This is not the way to welcome people to this country and help them contribute to its future prosperity,” says Dr Goldie.

“A responsible budget would strengthen the revenue base so that the government can do its job, especially to provide the essential services people need and protect people from poverty. Unfortunately this budget does the opposite, and the budget mistakes of the 2000s are being repeated.”

(Source: Media Release | Budget Key Points)


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