Where’s my tax cut?

The LNP didn’t take a lot of policies to the 2019 election but they did promise tax cuts for people earning up to $120,000 a year. AND they promised that the cuts would delivered by July 1st. The Prime Minister told low and middle-income earners they would have just over $1000 extra in their 2018-19 tax returns. Amazingly, people believed that and voted for them. 

Even the News Limited papers questioned his honesty, they said He is unlikely to be able to recall parliament before the end of the financial year to pass legislation for the promised tax cuts.

The problem is that the ATO needs a law change to change tax returns, despite the PM indicating that it could offer refunds on the basis of a nod & a wink. The law can’t be passed until Parliament is sitting. The PM doesn’t have a parliament until the AEC says so (i.e. the date for the return of the writs). It’s out of his control. If he decides to keep his promise the law will have to be retrospective. 

This is a indeed a tricky situation, but could the PM have seen this coming? According to this report Scott Morrison knew he wouldn’t be able to pass tax cuts by July 1st as it would be “unlikely” he could recall Parliament in time.

The New Daily has confirmed it was Mr Morrison who proposed the June 28 date for the return of the writs, detailed in his letter to Governor-General Sir Peter Cosgrove to formally call the election. That date makes it impossible for Parliament to pass the laws before July 1.

Looks like he told a mistruth. Surprise!!!

Read more at:

Original Budget: https://www.budget.gov.au/2018-19/content/factsheets/7-pitp.html

https://www.smh.com.au/federal-election-2019/tax-cuts-for-10-million-workers-in-doubt-as-morrison-concedes-delay-to-parliament-20190521-p51pgs.html

https://www.news.com.au/national/federal-election/scott-morrisons-big-election-promise-to-cut-taxes-by-1080-a-year-delayed/news-story/6c4847c7ca6fffe3bd891026172cb741

https://www.theaustralian.com.au/nation/politics/promised-tax-cuts-dont-have-to-wait-for-parliament/news-story/1a2e951d09dd90fea0114e2d9b5b9e13

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