Feds to ramp up stimulus projects
NATION-BUILDING infrastructure projects could be fast-tracked across the country to kickstart a sluggish economy following the Morrison Government passing its $158 billion income tax plan.
Treasurer Josh Frydenberg said the tax cuts would provide an $8 billion injection into the economy during the next few months and opened the door to rolling out the Government’s $100 billion infrastructure pipeline sooner than expected.
The pending infrastructure blitz comes as Australians are scrambling to lodge their tax returns to receive tax refunds of up to $1080, which will now be doled out within days.
As of yesterday 373,342 Australians had lodged their tax return for the 2018-19 financial year, a spike of 50 per cent compared to the same period last year.
Mr Frydenberg said workers were “very conscious” of the tax offsets and that explained the “big increase”.
In a major win for the newly elected Morrison Government, the tax cut package became law on Thursday night after receiving the support of key crossbenchers and Labor eventually waving it through the Senate.
With the Reserve Bank issuing a cry for help as it lowered interest rates to a record low this week, the Treasurer said the tax cuts would unleash billions of dollars into the economy. Combined with the interest rates cut, workers receiving the full tax offset on a typical mortgage of $400,000 will be about $1400 a year better off.
Mr Frydenberg said the tax cuts, which were unveiled in this year’s budget, helped turn around the Coalition’s fortunes because “tax became the defining issue at the election”.
“We stand for lower taxes and our political opponents, the Labor Party, want higher taxes,” he said.
The Treasurer said his next priority was getting to work on the Morrison Government’s $100 billion infrastructure pipeline over the next decade.
Asked whether this meant bringing forward funding commitments, Mr Frydenberg said: “We are keen to ensure projects are shovel ready; the Prime Minister is already talking to premiers, I’ll be talking to treasurers about the pipeline and about working constructively together.”
WE ARE KEEN TO ENSURE PROJECTS ARE SHOVEL READY; THE PRIME MINISTER IS ALREADY TALKING TO PREMIERS, BE TALKING TO TREASURERS ABOUT THE PIPELINE AND ABOUT WORKING CONSTRUCTIVELY TOGETHER. JOSH FRYDENBURG I’LL