The government is considering fast-tracking person tax cuts to boost the economy as Australia experiences its worst slump since the Great Depression of the 1930s.The country is now officially in a recession after June quarter data revealed the nation’s gross domestic product (GDP) has shrunk by 7 per cent.Data released by the Australian Bureau of Statistics (ABS) revealed that in the three months from April to June the nation’s GDP suffered its biggest drop since records began in 1959.
Treasurer Josh Frydenberg said all options, including tax cuts, were being explored to help the nation’s recovery from crippling coronavirus lockdowns.”That is one issue that we are considering in the context of the Budget recognising that if you put more money into people’s pockets there will be more spending and more spending will create jobs,” Mr Frydenberg told Today.”We will go ahead with implementing our plan for lower taxes and the timing of those tax cuts will be considered in the context of the Budget.
“The money that we put into people’s pockets, whether it is through tax cuts, whether it is through income support or whether it is through boosting aggregate demand by investing in housing or transport projects that will help create jobs across the country.”The government was embarking on an infrastructure boost to kickstart jobs and growth, he said.”Our plan is to invest in more infrastructure to bring forward up to $10 billion of projects that are shovel-ready and can get people back to work.”That includes getting “more flexibility” within the industrial relations system and creating 340,000 new training places.Australia’s economy was moving at “two speeds”, he said.”You have Victorian the rest,” Mr Frydenberg said.”Obviously in Victoria there are challenging times with the Stage 4 restrictions. It is making it difficult for businesses and spending and that will play out in the numbers in the months ahead.”
Source: 9news
