Winners and Losers in Australia’s 2018 Budget

With elections due within a year, Australia’s government on Tuesday announced modest tax cuts and more support for the elderly in a budget aimed at boosting its flagging poll ratings. At the same time, Treasurer Scott Morrison pledged to continue a crackdown on tax-dodging multinationals as he seeks to balance the books a year early. Here are the winners and losers.

The centerpiece of the budget is a seven-year plan for lower and simpler income taxes. Starting July 1, low and middle income earners will get an annual lump sum of up to A$530 a year. The opposition Labor party has already derided the measure, saying the extra cash of about A$10 a week is only enough to buy a hamburger or a milkshake. In addition, the government is amending tax brackets to offer relief. The 37 percent rate won’t kick in until people start earning A$90,000, instead of the current A$87,000, with the threshold rising to A$120,000 in 2022-23. The next year, the 37 percent bracket will be abolished completely. With a top personal tax rate of 45 percent kicking in after A$200,000 from July 2024, Australians will still pay one of the highest rates in the OECD.