JOE HOCKEY: Even With The Extra Fuel Excise And The Deficit Levy, Australians Will Pay Less Tax

Treasurer Joe Hockey hands his first budget down tonight (Photo: Getty)

The government hands its first budget down tonight.

And despite a debt levy and an increase in fuel excise, it says Australians will now pay less tax.

The AFR has a snippet from the budget papers, which says the tax burden will be reduced by $5.7 billion.

That’s “despite the reintroduction of indexation on fuel excise and the temporary budget repair levy’’.

It will achieve this, it says, by getting rid of the carbon taxes on 1 July, and clearing a backlog of 92 un-enacted tax changes announced by Labor.

An increase in petrol excise, twice per year in line with inflation, is supported by the Greens, who favour increases in tax on fossil fuels.

They don’t support the deficit levy though, which means it will need Labor’s backing.

The Opposition will wait until after the budget has been announced to make a decision, according to the report.

It is expected the deficit “levy” will see some Australians contributing an extra 2% of their taxable income, beginning at a salary threshold between $150,000 and $180,000.

There’s more here.

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.