Australia's Prime Minister, Scott Morrison, proposed a bill for tax reductions. This decision about the reduction is done for about 11 million Australians affected by the coronavirus (Covid-19) pandemic. As we know that this outbreak is not over until now.
The bill received support from opposition groups on Friday. Here's what news said on Friday, October 9, 2020. This economic stimulus package is getting the easy way. It is due to the ratification of the federal parliament three days after it is handed over by the government.
Australian Prime Minister Scott Morrison said the Act on income tax cuts could have a stimulating impact on the country's economy. It is what almost all countries in the world need today. The threat of recession as a result of the coronavirus pandemic is already in sight.
Number of Tax Withholding Packages Provided
To be known, the package of tax cuts provided is worth about AU$ 50 billion in Australia. This rule applies to categories of individuals and businesses. The government says income tax cuts will be seen from this October. It will trigger a positive effect.
That would bring in an additional AU$1.2 billion in salary payments by 2020. For information, income tax in Australia embraces a progressive system. The higher the income is, then the higher the percentage of tax to be paid. Therefore, the rules are made as clear as possible.
Under this withholding policy, the 19% income tax for the AU$ 37,000/year minimum salary group is raised to the AU$45,000/year income limit. This law also encourages many businesses to take initiatives in investing that will benefit future growth. The economy is also expected to rise.
This change is very real. It's a real budget that has a real impact on all Australians in recession due to the Covid-19 pandemic. The hope is that businesses that lose out due to this pandemic will not take too long to return to profit.
Meanwhile, UK Growth is Beyond Expectations
The UK government has expanded its recovery support program as it prepares for tighter restrictions on the Covid-19 virus. It will be announced next week. The UK government has imposed curfews for bars and restaurants across the UK. Further details of the restrictions will be announced soon.
The British pound is currently strengthening against the USD. The GBP/USD currency pair is currently at 1.3036 at 02:15 WIB. As of Friday morning, the UK had confirmed 564,502 positive cases of Corona and 42,682 deaths. This information was obtained according to data collected by Johns Hopkins University.
On 24 September, U.K. Finance Minister Rishi Sunak announced a new emergency package of measures to restrain unemployment and replace the state leave scheme that will expire this month. Some companies must be closed during the winter period as part of local or national restrictions.
They will receive grants to pay the salaries of staff who cannot work. The UK government will pay two-thirds of employees' salaries to protect their jobs over the winter. The new program will come into effect on November 1 and will last for six months.
Extra Financial Support to Be Provided
The extra financial support comes ahead of further restrictions that are widely expected to be announced on Monday night. This decision was taken in line with the infection which continues to rise sharply. The UK has reported 564,518 cases so far.
The 42,682 deaths were confirmed since the Covid-19 infected this country several months ago. Meanwhile, the Office for National Statistics said on Friday morning that cases in the UK had doubled to around 17,200 a day in the week to 1 October.
The figure was clearly higher than the positive confirmation rate of 8,400 per day in the previous week. The country is still struggling in returning the plague-like many other countries. The right economic strategy must be done.
