High-income earners to feel pinch of budget: Swan

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High-income earners are expected to be hit hardest by the upcoming federal budget as the government focuses on helping working families.

As an example, Fairfax newspapers report the government plans to save $80 million by closing a loophole related to share options used by corporate executives to minimise tax.

“This will be a budget where the burden will be shared and those people on modest incomes are entitled to a fair go,” Treasurer Wayne Swan told Fairfax.

“They don’t actually expect a bonanza out of anything, they just expect a fair go.

“These sorts of things are unacceptable when you’ve got a lot of people on modest incomes struggling to get by.

“They pay their tax, they go to work, they expect everyone else to pay their tax.”

Mr Swan defined working families as “the sort of people who make this economy go round” and who typically have a combined income of about $80,000.

“The sort of people who live out there in the western suburbs of Sydney or the northern suburbs of Brisbane … who are on relatively modest incomes who get up, go to work, come home, cook the tea, put the kids to bed, the two of them have been out to work, they’ve probably done a long commute, but they get up and do it again and they just keep doing it,” he told Fairfax.

New spending in the budget will be kept to a minimum, while dozens of savings and revenue measures aim to put downward pressure on inflation.

AAP

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