Income tax cuts may be as low as $12 a week

TAX cuts for middle-income Australians are unlikely to be more than $12 a week in tomorrow’s Budget.

Treasurer Scott Morrison will unveil the highly anticipated personal income tax cuts but sources believe the hippocket relief will be modest in the short term.

There will also be tax cuts for higher-income earners in the outer years but to counter attacks it is understood Budget papers will reveal how much tax is paid by high-income earners.

Mr Morrison told Channel 9 yesterday that tax cuts were coming but was coy on whether the Budget would return to surplus a year earlier than 2021.

“We have flagged for many, many months now that our priority is on delivering tax relief for low- to middle-income earners,’’ Mr Morrison said.

“And there is a good reason for that, they have been doing it tough, it’s been some time since they have had a decent pay rise.

“As we have seen things improve and the economy has strengthened, they should be the first to whom we seek to provide that tax relief for working Australians.”

Asked if voters will dismiss the tax cuts as just a hamburger and milkshake a week, Mr Morrison said: “For a start they would be referencing back to something many, many years ago at a time when tax cuts were being handed out a lot more often, one.

“Two, it’s been a long time since there has been some real relief in this area.

“And, if they were to make that observation then it would be very hard to say that the Government is being irresponsible at the same time.”