Original article by Joanna Mather
The Australian Financial Review – Page: 5 : 5-Apr-19
John Humphreys of the Centre for Independent Studies says a key measure in the federal government’s April 2019 Budget will have limited net economic benefit. He argues that the proposed increase in the low and middle-income tax offset is unlikely to have much impact on productivity, output or economic growth. His analyses also suggests that the government’s tax cuts package will cost about $122bn over 10 years, compared with Treasury’s forecast of $158bn, as a lower marginal tax rate will encourage people to increase their taxable income.
THE CENTRE FOR INDEPENDENT STUDIES LIMITED, AUSTRALIA. DEPT OF THE TREASURY, UNIVERSITY OF QUEENSLAND