lamington

In the Canberra bubble this is the joking reference to the LMITO (low and middle-income tax offset) about which there is some speculation for the next Budget. This tax break was introduced by Morrison as Treasurer in 2018. It was meant to be the first step in a strategy to reduce the tax thresholds from five to four.  The second step was to push out two of the thresholds: 32.5 per cent would come in at $45,000 instead ion $35,000 and 37 per cent would come in at $120,000 instead of $90,000.  

As stage two was introduced, the lamington should have been taken away because everyone who had received that tax break would be getting as much if not more from the new tax arrangements.  At that point they would be double dipping.

But it is difficult to take something away from people once they have it, particularly in times of financial stress and, as now, just before an election. People want to hang onto the lamington.

It is nice to see a reference to the magic pudding also in the Budget discussions.  It comes along the lines that the Budget cannot continue to hand out money. It cannot be a cut-and-come-again kind of Budget forever.

So will the lamington still be there in Frydenberg’s Budget or will it be absent from the groaning board of Budget goodies, otherwise known as a cash splash?