Morrison set to announce company tax cut in budget

Federal Treasurer Scott Morrison

Federal Treasurer Scott Morrison Source: AAP

Treasurer Scott Morrison is set to announce a company tax cut when he hands down Tuesday's federal budget.


The federal government will fund company tax cuts through a crackdown on multinational tax dodging.

 

Treasurer Scott Morrison has told The Australian his "enterprise tax plan" will channel increased revenue into tax relief aimed at supporting the non-resources sector.

 

He says the tax office now has enough information about the structures of major multinational companies to estimate the additional tax revenue.

 

Mr Morrison has also flagged modest tax relief for people earning more than $80,000.

 

But it's unlikely there will be tax cuts for those on lower income brackets.

 

"People shouldn't expect measures to produce a next day better off/worse off comparison," he told Fairfax Media.

 

Cabinet minister Simon Birmingham says the government wants to help middle Australians who want to earn a few extra dollars but are facing disincentives because of tax brackets.

 

Lower income families already have a high tax-free threshold when family tax benefits and other measures are taken into account, and welfare payments are indexed, he told Sky News.

 






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