Morrison’s pre-election cash handout
PENSIONERS and some families could receive one-off cash payments from the Morrison government in a pre-election sweetener.
Senior advisers are looking at two one-off payments that could be included in the April 2 budget, the Australian Financial Review reported on Thursday.
If the government decides to go ahead with the plan, the payments could be distributed before the federal election, which is due by mid-May.
The first option is a one off handout to age pensioners and the second is a cash injection for families.
It's believed the single payments would be aimed at luring those who won't directly benefit from the Coalition's $144 billion personal income tax cuts being phased in over the next six years.
The one-off payments handed out before June 30 wouldn't hinder the government's pledge to return the budget to surplus in 2019-20, the AFR says.
Treasurer Josh Frydenberg has not ruled out the measure, responding to an inquiry about the idea by simply saying the budget will continue the federal government's economic plan.
"The government will hand down the budget on 2 April 2019 building on our successful economic plan, which has already delivered over 1.2 million new jobs, lower taxes, record spending on health and education, and a budget on track for surplus - all without increasing taxes," he told AAP in a statement.
The personal income tax cuts began in mid-2018, with low and middle-income offered a new tax offset and the threshold for the 32.5 per cent tax bracket lifted from $87,000 to 90,000.
The final round of cuts under the plan will take effect in 2024, and will mean 94 per cent of Australians won't have to face a marginal tax rate any greater than 32.5 per cent.
The plan is worth $144 billion over 10 years.