More tax cuts flagged in major economic forecast

More tax cuts could be on the agenda as Treasurer Jim Chalmers prepares to unveil a 40-year economic forecast today.

Chalmers will release Australia’s seventh intergenerational report today, offering a sneak peak into Australia’s economic future.

According to excerpts obtained by Nine newspapers on the weekend, this will include a flagged possibility of extra tax cuts.

The report will claim that this year’s controversial federal budget already lowered the tax burden on working Australians, and that this will continue into the future.

“By the end of the medium term, the share of personal income tax burden on workers is expected to be 2 percentage points lower than it would have been without reform,” excerpts reported by the Sydney Morning Herald read.

“Over time, this share is expected to fall further as an increasing share of property investment and capital gains will become subject to the new tax settings.

“In addition, the government’s efforts to improve the budget position have created more room to provide further tax relief in future budgets.”

Read more

Albanese to push for global AI guardrails on but won’t commit on copyright

Previewing the report on social media site X in recent days, Chalmers raised two central issues - longer lives for Australians, and the current AI boom.

“One of the most important conclusions in the Intergenerational Report is that Australians will be living longer, healthier lives over the next 40 years - and that is worth every single dollar of extra pressure it puts on budgets,” he said.

The report will forecast an extended life expectancy of 86 for men and almost 90 for women by 2066.

But this corresponds with an ongoing decline in birth rates, with Australia’s ageing population skewing more heavily towards the elder generations.

The government is looking at ways to provide support for larger families, but has ruled out a baby bonus.

Chalmers admitted to reporters on Sunday that the report would contain “confronting” findings but that Australia had some advantages in facing the “serious risks” that lay ahead.

One of the chief challenges was the rise of AI.

“The technological revolution and AI will be absolutely front and centre in the Intergenerational Report I’ll deliver on Monday,” Chalmers said on X.

“We’re confident we can maximise the upside and minimise the risks, but we’re not complacent about it because the stakes are so high.”