What you need to know about the new tax code

Updated June 15, 2018 16:27:33 Free spending is a cornerstone of any well-functioning economy, but the impact on the economy can be devastating, and some businesses are facing huge losses, with many more than 50,000 small businesses facing losses in the coming months.

The budget update from the Treasurer, Scott Morrison, has been billed as the “biggest tax cut since WWII”, but critics are concerned it will mean the biggest hit on families.

“There’s a lot of work ahead of us,” says the president of the Australian Industry Group, Mark Hetherington.

“The economy will be better off and that’s the important thing.”

The government is now looking at whether to cut the GST from 10 per cent to 5 per cent.

The government is also looking at a cap on the amount of business tax relief for small businesses.

Businesses and trade unions have been campaigning for a 10 per of GST cut.

“A cut in the GST is not enough to create jobs,” said Julie Elliott from the Australian Manufacturing Workers Union (AMWU).

“We want to see more investment in the manufacturing sector, more investment to expand and more investment for our children and grandchildren.”

The AMWU says the changes are necessary to prevent a “lost decade”.

“It’s not just about cutting the GST,” said Mr Elliott.

“It’s about making sure we’re creating jobs and making sure people have the skills they need to grow and thrive in the economy.”

But it is unlikely the changes will happen without the support of the Greens.

“It will be good news for Australian manufacturing, and it’s good news if the Coalition can get it through Parliament,” said Greens Leader Christine Milne.

“We have to put our priorities where they need not to be, and that means keeping the GST cut in place.”

Ms Milne said she is “delighted” the tax cuts were not being considered by the Greens, because they “won’t deliver a real dividend”.

“There is nothing in the budget that will make a real difference in our economy,” she said.

“There’s not a single thing in this budget that’s going to make Australians richer, and they are going to pay a lot more tax to do so.”


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