New government figures show nearly eight million Australians had an extra $760 in their pay packets over the last six months thanks to COVID-driven tax cuts.
And Treasurer Josh Frydenberg says there is plenty more cash to come for workers over the course of this year.
“$7 billion has gone into the pockets of Australian families in the last six months and more than $1 billion a month will go into their pockets over the next nine months,” Frydenberg told Sunrise on Monday.
Data from the Australian Tax Office shows $5.9 billion flowed back to 7.8 million earners nationally in the six months to January thanks to the low and middle-income tax offset.
The offset gives these income earners up to $1080 back in their pay over the year.
Households further benefited from $1.1 billion in tax savings over this period due to the stage two tax cuts being brought forward in the federal budget.
These changes lifted the top threshold of the 19 per cent tax bracket to $45,000 from $37,000 and increased the 32.5 per cent tax bracket’s top threshold to $120,000 from $90,000.
The cuts were introduced to get Aussies spending after the economy nosedived during the coronavirus pandemic.
Frydenberg said the federal government’s economic recovery plan to support Aussies facing “the biggest economic shock since the Great Depression” was working.
He added that reopening state borders would help the economy to recover further.
“Certainly closed borders cost jobs, there’s no secret in that,” he said.
“We don’t want the borders to be closed for one day longer than they have to.”