The tax offset for low and middle income earners (LMITO) will not be extended beyond this financial year, so does this amount to a tax increase for these people?
Treasurer Josh Frydenberg tells the podcast the offset was a “temporary measure” that was extended as fiscal stimulus, due to the pressures on the budget from COVID. It’s being removed “now that the economy is normalising”.
With unemployment set to fall below 4%, Frydenberg also says “what we think is going to happen is upward pressure on wages”.
