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Fact sheet

Fact Check: Did Malcolm Turnbull announce a tax cut for millionaires and a tax hike for workers in the budget?

Publisher
Australian Labor Party Tax cuts
Description

Federal Opposition leader Bill Shorten claimed Prime Minister Malcolm Turnbull announced a tax cut for millionaires, and a tax hike for working Australians in the 2017-2018 budget. But Mr Shorten's claim is over the top. The measures announced in the budget do not include any personal income tax cuts. Mr Turnbull made no "announcement" about millionaire tax cuts. An additional tax that was brought in by the Abbott government in 2014, the temporary budget repair levy, was, by law, only scheduled to last for three financial years. Unless the Parliament takes the proactive step of passing new legislation, the levy will not continue beyond June 30. And the use of the emotive term "millionaire" misleads about the type of people who have been paying the soon-to-expire levy. It applies to anyone with an income over $180,000 a year, kicking in at a level far lower than $1 million a year, and has nothing to do with the value of assets people hold. Mr Shorten correctly notes that the budget does include a "tax hike": the Government is increasing the Medicare levy from 2 per cent to 2.5 per cent. But this increase will apply to most people including "millionaires", not just so-called "working Australians".
Verdict: Over the top

Publication Details
License type:
All Rights Reserved
Access Rights Type:
open