The Albanese government has not ruled out a one-off tax offset of up to $300 for Australian workers in the upcoming federal budget, scheduled for May 12. Prime Minister Anthony Albanese acknowledged speculation about the measure, stating that voters can make up their own minds about any tax changes announced next week.
The Australian reported that Labor is preparing to announce an earned income offset of between $200 and $300 for every Australian worker who pays tax, applying only to income from work and not investments. The measure would be for the next financial year.
Treasurer Jim Chalmers declined to confirm the offset, saying speculation about the budget is 'not always right.' He noted that the government is already cutting taxes. Shadow Treasurer Tim Wilson warned the measure could fuel inflation, citing the International Monetary Fund, but stopped short of ruling out Coalition support.
The federal government is also expected to rein in property tax settings by slashing negative gearing and the capital gains tax discount, though changes would be grandfathered. Prime Minister Albanese had previously vowed not to touch negative gearing ahead of the 2025 election.
AMP chief economist Shane Oliver said an income tax offset is a 'better way' to provide cost-of-living relief than the fuel excise cut, calling the speculated amount 'modest.' He suggested the offset might be means-tested to target assistance effectively.
