The government of Scott Morrison has proclaimed outstanding news for the several Australian taxpayers. This includes an exemption to the tax instalments they were paying till now. Mr. Morrison has stated that the government has done this by suspending the indexation for the financial year of 2020/21.
A look at the 3 significant highlights
A number of changes are likely to take place after this decision was made by the Scott Morrison government. Besides, Mr. Morrison has also said that the government has done this to assist their Australian taxpayers through some effective ways. Hopefully, the 3 prominent highlights given below will give you a clear idea about all these things.
Scott Morrison has made this decision specifically in the light of the Covid-19 crunch. Hopefully, this will relieve several Australians from the burden of paying such tax instalments.
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The government objectives
The Scott Morrison government decided to suspend the indexation of instalments simply to help the various Australians out there. Actually, indexation is used to calculate a range of tax instalments every year. This gives the ATO a deeper insight about the forthcoming income growth in Australia.
Great news for Australians amidst Covid-19
To do this effectively, they ask the various Aussies to pay tax instalments all through the year. It even utilizes historical gross domestic reports excluding the other payment options like pensions usually comprising the consumer price index. The picture is completely different for Australians this time due to the Covid-19 crisis. The change was made by the Scott Morrison as result of this experts say.
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A significant slump in ATO’s index in March, 2020
The index of the ATO witnessed the maximum downfall in March, 2020. This is because the Australians apprehended the worst possible situation as a result of the Covid-19. With time, this slump started recovering reasonably due to the increasing curb on Covid-19. Hopefully, this change will act as a good deal of comfort to the various Australian taxpayers paying tax instalments. For more information and expert guidance on such matters Tax Consultants Perth will always be there to help you.