Morrison’s tax cuts pass Parliament

Australians lodging their tax returns over the next few weeks will receive a bonus of up to $1,080, after Mr Morrison succeeded in seeing his flagship tax cuts approved in Parliament on Thursday night.

The government received the support of crossbenchers to pass its $158 billion three-stage tax cuts, despite Labor’s efforts to amend the bill.

The opposition said earlier it supports the first two stages of Mr Morrison’s tax cuts package but is opposed to the third stage, which would see long-term structural tax changes.

Late last month, the Labor Party proposed fast-tracked tax cuts to stimulate economic activity and job creation. The opposition issued a statement urging the government to bring forward the second stage of its income tax plan from the current 2022-23 deadline to 2019-2020.

“Labor calls for the increase of the 37 per cent threshold from $90,000 to $120,000 to be brought forward to 2019-20,” said shadow treasurer Jim Chalmers.

But on Thursday night, the opposition voted in favour of the legislation, stating it wouldn’t oppose tax cuts for workers.

The first stage of the plan will deliver tax cuts of up to $1,080 to low and middle-income earners this tax time.

The second stage will mean more people, earning up to $45,000 instead of $41,000, will get a 19 per cent tax rate, while the third stage will lower the tax rate from 32.5 per cent to 30 per cent for everyone earning between $45,000 and $200,000 from mid-2024.