Malcolm Turnbull promises personal income tax cuts will be announced before the 2019 federal election, running alongside his government's push for cutting the company tax rate cut to 25 per cent for all businesses.
"How much we can do and when we do it will depend on the budgetary circumstances but we do have the ability to do it," the prime minister told Sky News on Sunday.
He said the government gave a clear signal of intent when he flagged the cuts during a speech to business two weeks ago
"We are focused on keeping more money in the pockets of hardworking Australians," he said.
"That's our intention but of course we have to keep to our commitment to getting the budget back into balance by 2021. We are very satisfied we can do that."
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His comments came as the US Senate narrowly passed President Donald Trump's ambitious tax cuts, which will include lowering the US company tax rate from 35 per cent to 20 per cent.
Mr Turnbull said the aim to reduce Australia's corporate tax rate from 30 per cent is to keep the economy competitive,
So far the parliament has agreed to cuts for businesses with a turnover of up to $50 million.
Labor's Tim Hammond said the economy simply cannot afford $65 billion of business tax cuts.
"There are many different ways in which we can create a very positive investment environment in Australia without going down the path of completely blowing a hole in the budget," he told Sky News.
