Chalmers' Budget hit-list: GST may increase, tax-breaks cut to rein in deficit
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Loading... - Sophie Harris
- 12 Apr 2023
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Pruning back stage-three tax cuts, raising the GST and cutting wasteful spending on major defence and transport projects are among a suite of options the government could consider to rein in the budget deficit, a major report says.
Treasurer Jim Chalmers is due to hand down his second budget in less than four weeks and the spotlight is on how the government plans to ease cost-of-living pressures without fuelling inflation or adding to government debt.
A Grattan Institute pre-budget report presented a number of immediate and long-term options for addressing the deficit.
Without urgent action, the institute warns, Australia is on track for 25 years of deficits, expected to be worth nearly $50 billion every year by 2030.
The treasurer told ABC Radio on Wednesday the government was looking at some of the options, including the possibility of reforming the petroleum resource rent tax.
Treasury is reviewing the tax on the profits of fossil fuel extractors and Dr Chalmers says the agency is working through options to improve how the tax applies to gas producers.
The government has also committed to “modest but meaningful” changes to super tax breaks to target returns on balances over $3 million.
But Chalmers also said there were some things “we won’t be coming at”, including changes to Family Tax Benefit Part B. Read More..
