The Federal Budget put forward by the Morrison Government on Tuesday is heavy on tax cuts for everyday Australians and support for small businesses. But there are several other measures that could have an impact on e-commerce businesses, should the Coalition Government be reelected. Here’s an overview of the most important parts of the Budget for online retailers.
Consumer tax cuts could boost spending
Treasurer Josh Frydenberg laid out a plan to deliver $158 billion in tax cuts for everyday Australians, which could see more than 10 million Australians will get tax relief as early as July.
Under the plan, the 32.5 per cent tax rate would be cut to 30 per cent, meaning 94 per cent of the tax-paying public – those who earn between $40,000 and $200,000 – would pay less tax. For the 4.5 million Australians earning between $50,000 and $152,000 per year, the savings would amount to $1080.
Frydenberg described this as the biggest change to the country’s tax system since the Howard Government, and said it would help to counter the rise in cost of living and boost spending in the economy.
Russell Zimmerman, executive director of the Australian Retailers Association, agrees.