Morrison considering tax cut extension that could deliver $1000 extra to millions

Millions of Australians could be $1000 better off as the Morrison Government considers extending tax cuts.

With both parties preparing for an upcoming federal election, the government is dangling the political carrot, considering extending income tax cuts due to end next June.

The Low and Middle Income Tax Offset provides a maximum benefit of $1080 to those who earn between $48,001 and $90,000.

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"Australians can always bank on the fact that taxes will be lower under a Liberal-National government than under a Labor government," Minister for Finance Simon Birmingham said.

Federal Opposition Leader Anthony Albanese said Labor "would welcome any support for low- and middle-income earners."

The Australian Taxation Office says people earning between $48,001 and $90,000 receive the full $1080.

Those earning between $90,001 and $126,000 receive $1080 minus 3 cents for every dollar of income above $90,000.

The offset was extended last year when the government brought forward stage two of the personal income tax plan.

It is currently set to end after the 2021-22 financial year.