Federal Treasurer Scott Morrison on Wednesday indicated that his first budget will focus on improving the tax system and will aim at bringing to the books the tax dodging multinational companies. The government will also try to reduce the burden of taxes on Australians who belong to the middle-income group.
Morrison said that improving the tax system is the top priority of the government as the Australian Taxation office warned of stricter action against the tax arrangements of the multinational businesses. Though these aspects have also featured in the sidelines of the past budgets, Morrison said that this time it will be the primary focus.
“We need to ensure our tax system is sustainable and we make sustainable changes to the tax system, so it can support the needs that are there in the future,” Morrison was quoted as saying by the Yahoo News. “If it’s well targeted, it deals with the loopholes, those who are seeking to take a lend of the system, and that’s what we will be doing in this budget.”
Assistant Manager to the Treasurer Alex Hawke confirmed that the government is looking for better ways to make the tax system favourable for the ordinary Australians.
“We’ve said consistently that we’re concerned about the impact of bracket creep,” Sky News quoted Hawke as saying. “The government will continue to look at that issue and ensure to do all we can to address bracket creep and remove that burden.”
He, however, cautioned that the changes would not be sweeping. “We have to take those decisions you can afford,” he said.
The tax office on Tuesday indicated how it is planning to clamp down on tax avoidance. It announced that it would release alerts to the businesses and individuals involved in profit shifting arrangements as warnings.
Prime Minister Malcolm Turnbull is expected to call for a double dissolution election shortly after Morrison’s budget which will be presented on Tuesday. This will make it more important than usual to the government’s electoral chances.