Scott Morrison is delivering tax cuts on election eve

Photo: Stefan Postles/Getty Images.

Two million Australians earning more than $80,000 a year will get tax cuts on July 1.

The Australian reports that treasurer Scott Morrison will move the changes to the day before the expected federal election, contrary to earlier proposals for them to be introduced after the election.

“Obviously we want the tax cuts to start earlier rather than later should they be confirmed in the budget, because we want middle class earners not to be moving into higher tax brackets,” industry minister Christopher Pyne said on Sky News.

The tax cuts stand in contrast to Labor’s policy to reduce tax cuts for the nation’s highest income earners in a bid to boost funding to pensions, schools and hospitals.

Currently, workers earning between $37,001 and $80,000 pay 32.5 cents for each dollar earned over $37,000 while those earning between $80,001 and $180,000 pay 37 cents for every dollar over $80,000.

According to the AFR, small and medium business will also come out on top in Tuesday’s budget following last year’s $20,000 tax break for small businesses.

“They’re the hope of the side: they work hard, earn more; the budget has to back them, that’s the bottom line,” treasurer Morrison said.

It is understood that remaining revenue from the government will be dedicated to SMEs especially with the decline of the mining industry.

The tax cuts will be announced in the federal budget on May 3.

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.