Tax cuts could be brought forward, Treasurer Josh Frydenberg suggests

Treasurer Josh Frydenberg. Picture: Dion Georgopoulos
Treasurer Josh Frydenberg. Picture: Dion Georgopoulos

Treasurer Josh Frydenberg has suggested tax cuts could be brought forward as the government puts together a new package of stimulus and support to be announced in two weeks.

The government's tax cuts would create "one big tax bracket" for incomes between $45,000 and $200,000 with a top tax bracket of 30 cents.

"We are looking at that issue and the timing of those tax cuts because we do want to boost aggregate demand, boost consumption, put more money in people's pockets and that is one way to do it," he said on Wednesday.

On July 23, Mr Frydenberg, himself a Victorian, is due to release a budget update including a package of measures to take effect in October after the JobSeeker and JobKeeper payments and the bulk of the rest of the government stimulus ends in September.

The Victorian lockdown would hit forecasts for economic growth and unemployment, Mr Frydenberg said. It was costing the economy up to $1 billion a week.

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The recovery was "a confidence game" and confidence had taken a hit in the past few weeks.

Mr Frydenberg would not be drawn on the future of the JobKeeker wage subsidy, worth $1500 a fortnight to about three million workers, and the JobSeeker unemployment benefit, worth $1100 a fortnight.

But he said, "There will be another phase of income support, it will be targeted, it will be temporary, it will be designed to give help to people who need it most."

Banks have announced a four-month extension to deferring loan and mortgage repayments beyond September but on a case-by-case basis. Mr Frydenberg said $260 billion of loans had been deferred.

This story Tax cuts could be brought forward, Treasurer suggests first appeared on The Canberra Times.

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