Pearce residents to get tax relief

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The Turnbull Government will continue its stronger communities program, which allowed the Gingin Bowling Club to install solar panels. Picture: Gingin Bowling Club/Facebook

THE Federal Budget has money for the extension of the freeway to Romeo Rd and the extension of the building better regions fund and the stronger communities program, which allowed the Gingin Bowling Club to install solar panels.

Pearce MHR Christian Porter said the Budget included $108 million for the expansion of the Mitchel Fwy to Romero Rd.

Mr Porter said the Turnbull Government was sticking to its plan to build a stronger economy to benefit all Australians.

“We are delivering tax relief with a focus on low and middle income earners, investing in congestion busting, safety boosting infrastructure and responsibly returning the budget to balance,’’ he said.

“Under the government’s economic plan jobs are being created, investment is rising and the budget is strengthening.

“This means that we can continue to guarantee the essential services Australians rely on.”

Mr Porter said the government’s plan would deliver lower, fairer and simpler taxes to encourage and reward working Australians.

“Our tax relief plan will encourage and reward hard working Australians.

“Under our plan to reduce cost pressures on household budget, 71,539 taxpayers in Pearce stand to benefit from the low and middle income tax relief in the upcoming 2018-19 financial year.’’

In a story published by the ABC John Daley and Danielle Wood from the Grattan Institute said the top 20 per cent of income earners in Australia would eventually benefit most from the Turnbull government’s tax plan.

Mr Daley and Ms Wood said their analysis showed most of the revenue reductions to government from the plan would be the result of lower taxes on high-income earners.

“Once the three-stage plan — including removing the 37 per cent tax bracket — is complete, $15 billion of the annual $25b cost of the plan will result from collecting less tax from the top 20 per cent of income earners,’’ they said.

“That is, people who currently have a taxable income of $87,000 a year or more.

“Australia’s progressive tax system ensures that people with higher incomes pay higher average rates of personal income tax.

“Without changes to tax scales, bracket creep gradually increases average tax rates for all taxpayers.

“Middle-income earners are affected most in terms of higher average tax rate.

“Even under the Turnbull plan, average tax rates are forecast to be higher for all taxpayers in 2027-28 than they are today — except for a few high-income earners who are less affected by bracket creep in the first place.

“A taxpayer who earns $120,000-a-year today will pay an average tax rate of 29 per cent in 2027-28, unchanged from today.

“In contrast, average tax rates for middle-income earners will continue to rise.’’

Mr Porter said the government’s plan would ensure it lived within its means with a forecast return to a modest budget balance in 2019-20, increasing to a projected surplus of $11 billion in 2020-21.

This meant it would no longer borrow to pay for essential services and would target the lowest average real growth in payments of any government in the past 50 years.

He said the $20,000 instant asset write-off would continue for another year, helping small business invest in new equipment.

“This is on top of legislated tax cuts for small and medium businesses that are helping them to grow, create more jobs and pay higher wages,’’ he said.

“Western Australia is also set to benefit from the Liberal Government’s significant infrastructure investment with an additional $2.8b delivered in the 2018-19 Budget, bringing total infrastructure investment in the State to $9.6b from 2013-14 to 2021-22.