Tax Relief For Remote Australians On The Horizon As Coalition Pushes New Election Policy
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The Coalition government was reportedly evaluating introducing tax breaks for Australians living in remote and regional areas if they win the majority in the next election, as part of their "lower, simpler, fairer" tax reform plan.
Under the proposed policy shift, the Zone Tax Offset (ZTO) and other regional concessions will be rolled out, aiming to soften the higher living costs faced by residents living in the areas.
The Coalition is also contemplating amending the Fringe Benefits Tax and increasing income support through the Remote Area Allowance, Sky News reported.
The residents in the remote and regional areas have been battling challenges like rising fuel and housing prices. A 2020 report recommended cutting back on ZTO to ease the concerns, but the Coalition believes the situation has undergone massive change since then.
Opposition Leader Peter Dutton said in Mount Isa that he was in support of the tax reforms to help reduce living expenses.
"We're happy to have a look at taxation arrangements," Dutton said on Friday. "People who live in regional towns (are) paying more for petrol, paying more for electricity, paying more for housing. There's an additional cost that comes with it."
"They're all common sense discussions we should have. It should include a discussion around whether the current taxation arrangements are fit for purpose," he said, adding that there was a strong moral reason why tax concessions should be awarded to the people living in the remote areas.
The tax cut was a longstanding plan as members of the Nationals party, including Barnaby Joyce, showed their support during their stints as cabinet minister.
"I think there are arguments for people who live in regional towns where you're paying more for petrol, you're paying more for electricity, you're paying more for housing, there's an additional cost that comes with it," Dutton said, according to ABC. "We're happy to have a look at taxation arrangements."
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