By Alana Tindale and Stephen Johnson For Daily Mail Australia
Published: 06:13 GMT, 11 January 2021 | Updated: 06:25 GMT, 11 January 2021
Australia's economy is expected to bounce back from the Covid recession in 2021 as generous tax cuts of $2,160 for average-income earners are brought forward.
AMP Capital chief economist Shane Oliver said the backdating of tax relief to July last year, from July 2022, was set to help boost consumer spending as borrowers had more left over after paying down their mortgage.Insurance Loans Mortgage Attorney Credit Lawyer
'As people use it to pay down their mortgage faster it helps reduce the risk of debt servicing problems,' he told Daily Mail Australia on Monday.
'[It can] also bring forward an increase in spending in the years ahead.'
Australia's economy is expected to bounce back from the Covid recession in 2021 as generous tax cuts of $2,445 for average-income earners are brought forward. Pictured are Boxing Day shoppers in Melbourne's city centre
Treasurer Josh Frydenberg's October budget brought forward by two years $17.8billion worth of Stage Two tax cuts that in 2019 were initially designed to have been rolled out in July 2022.
An Australian on an average full-time salary of $89,123 a year is set to receive $2,160 in tax cuts as part of a plan to give either a tax cut or a tax offset to 11million Australian workers.
Dr Oliver said that while some of the tax cut money would