16.6 C
New York
Saturday, May 21, 2022

Scott Morrison talks tax cuts as pressure mounts on gas prices

- Advertisement -
- Advertisement -

<span>Photograph: Bianca de Marchi/AAP</span>” src=”https://s.yimg.com/ny/api/res/1.2/QG48S7dK2pSigvkaNVZ6iw–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTU3Ng–/https://s.yimg.com/uu/api/res/1.2/ysrFbjkel2ic0nEVNs_BTg- – ~ B / aD02MDA7dz0xMDAwO2FwcGlkPXl0YWNoeW9u / https: //media.zenfs.com/en/theguardian_763/ec68eb10ecdd2f61aa30f51454d68e12 “data-src =” https://s.yimg.com/ny/api/res/1.2/QG48S7dK2pSigvkaNVZ6iw–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTU3Ng –/https://s.yimg.com/uu/api/res/1.2/ysrFbjkel2ic0nEVNs_BTg–~B/aD02MDA7dz0xMDAwO2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/theguardian_763/ec68eb10ecdd2f61aa30f51454d68e12″/></div>
</div>
</div>
<p><figcaption class=Photographer: Bianca de Marchi/AAP

Some state Liberal leaders and national parliamentarians are calling on the government to cut the tax on fuel as gasoline hits $2.20 a litre.

Prime Minister Scott Morrison has emphasized the importance of the government’s tax cuts amid speculation about how the budget will address pressures from rising costs of living.

Facing calls from state Liberal leaders and national parliamentarians to cut the fuel tax as gasoline tops $2.20 a litre, Morrison said Monday the government was “well aware” of the pressure families are feeling. in the family budget.

“These cost-of-living impacts are real, and the Australian government understands that,” Morrison said.

“There is always a lot of speculation before the budgets and then I will leave the government decisions to [the] budget for that night… but there are a lot of pressures on the cost of living and that is why our tax cuts are so important.”

Related: Roman Abramovich among the Russian oligarchs targeted by the Morrison government’s new sanctions

While Morrison has left open the possibility of reducing the excise tax on fuel, which is set at 44.2 cents per litre, he said the Coalition’s approach had been to reduce the tax burden.

Liberal Prime Ministers Steven Marshall of SA and Peter Gutwein of Tasmania have urged the Morrison government to reduce the excise duty, which was frozen in 2001 by the Howard government in the face of community pressure on petrol prices.

But widening the debate on domestic cost pressures, Morrison said gasoline was just an issue facing consumers and pointed to the broader economic benefit of tax cuts. He said someone earning $90,000 a year was better off $50 a week than when Labor was in government after Coalition changes to personal income tax rates and low income tax compensation. and a half.

“By cutting taxes and our commitment to cut taxes, that’s actually helping Australians better deal with cost-of-living increases that you see, for example, in petrol price increases.”

The government has been considering an extension of the temporary low- and middle-income tax break that ends in 2021-22, but there are fears the $7 billion move could add to inflationary pressures in the economy.

Last month, Treasurer Josh Frydenberg said the tax break was introduced as a result of current economic circumstances and “was not a permanent feature of the tax system.”

Morrison is expected to use this month’s budget to announce a comprehensive cost-of-living package for the upcoming election, which may also include a cut in the excise tax on draft beer after a concerted campaign by hoteliers and the alcohol lobby that has been backed by marginal sectors. deputies seat.

The change would cut the cost of a schooner of beer by 30 cents if passed on to consumers, but has been criticized as being aimed at men and inconsistent with health guidelines.

Labor has accused the government of not doing enough to tackle rising costs of living, saying the Coalition ridiculed its childcare policies and oversaw stagnant wage growth.

“Families are under enormous pressure: everything is going up except people’s wages,” party leader Anthony Albanese said.

“We have food, whether it’s meat, whether it’s vegetables, the essentials for life are also going up.

“We know that rents are also going up. We know that the cost of child care is also increasing.”

Albanese said the Coalition had “done nothing about gasoline,” which had become more expensive for consumers before Russia’s invasion of Ukraine triggered a series of sanctions.

He said Labor would wait to see what the government would do about fuel excise duties before committing, but promised a “full suite” of measures aimed at tackling the cost of living.

“We have our own announcements coming up to address the cost of living,” Albanese said.

On Monday, the president of the Australian Council of Trade Unions, Michele O’Neil, said that people needed relief, but that a change in the tax on fuel would be only a short-term answer.

“It doesn’t address what really needs to change, the fundamentals: nine years of low wage growth, rising casualization and job insecurity,” he said.

Economists have warned that the Russian invasion of Ukraine may have unforeseen consequences for the Australian economy, including ongoing inflationary pressures, with fuel forecast to hit $2.50 a litre.

The International Monetary Fund has warned that price shocks “will have an impact around the world”, but particularly for the poorest households for whom food and fuel account for a larger share of spending.

On Monday, New Zealand Prime Minister Jacinda Ardern announced a halving of public transport fares and a cut in government fuel taxes in response to what she described as a “wicked perfect storm” of inflation. that had seen petrol rise to more than NZ$3 a litre.


Source link

- Advertisement -

New Articles