The government could be bringing forward $158 billion worth of personal income tax cuts in the October budget after Wednesday’s economic figures painted a concerning picture of the state of Australia’s finances.

Treasurer Josh Frydenberg floated several methods to boost jobs and re-start the economy, including red tape reduction, boosting skills and business tax relief.

“We are considering the timing of those tax cuts, and any announcements would be made in the budget,” said Mr Frydenberg.

“It’s important that people recognise that tax cuts put more money into people’s pockets. More money into people’s pockets means more spending and more spending means more jobs.

“But these are still under consideration, so I don’t want to add to the detailed speculation, you’ll have to wait until budget day,” the Treasurer noted.

On Wednesday, data from the Australian Bureau of Statistics confirmed that Australia is now officially in recession following a GDP decline of 7 per cent in the June quarter.

A lot is expected of the October budget to remedy the bleak situation, including measures to stimulate business activity and boost jobs.

The Treasurer explained that ahead of the budget, the government will be focusing on making it easier for businesses to grow.

“How do we make it easier for businesses to grow, to innovate and to hire? How do we make it easier for businesses to do business?” said Mr Frydenberg.

“That is where, without great cost to the budget, you can unlock the entrepreneurship and the innovation of our businesses, and that is about cutting red tape. That is about the industrial relations flexibility.

"That is about trying to get better systems in place.

“Yes, our debt will be higher than ever before because every dollar we spend today is borrowed money. But we had no option than to spend as needed to get the public through this crisis, but we are very focused on the recovery plan.”

 

Source: IPA