Scott Morrison hints of lower income tax breaks in budget

Treasurer Scott Morrison said the 2016 budget will include superannuation tax breaks or “top ups” for lower-income earners and women, the Australian Financial Review has reported.

"We understand that when super was designed it was sort of a one-size-fits-all arrangement...and we all know the reality of modern life and the modern economy's very different to that," Morrison told reporter Phillip Coorey on Sunday.

Industry Super Australia welcomed the news in a statement which noted the plight of lower income earners and women who have much less to retire on.

“Tax settings on super are outdated and need to be more in tune with the sharp increase in part-time work over the last 25 years,” said Deputy Chief Robbie Campo.

"If the changes are well designed, they will not only boost the super savings of those who need it most, they will ease the extent to which many need to rely so heavily on the age pension.”

RELATED: Obama creates Equal pay Day for Americans to fight injustice

Campo referred to the fact that the government had been planning on scrapping Labor’s Low Income Super Contribution (LISC) scheme which involved an annual $500 payment to help lower income earners grow their superannuation.

“Abolishing the LISC would be a retrograde step, further reducing the super savings of millions of Australian women,” Campo said in a reference to the gender pay gap in Australia.

The government will announce the official budget at 7.30pm tonight.

Three ways to save money:

  • Stick to a strict budget using a budget calculator which precisely factors in all your expenses. This will help you identify which areas to cut back on and where your money is really going.
  • There’s no point in stashing your savings where it doesn’t count. Look for a high interest savings account with a competitive rate that will give your funds a boost over time.
  • Another way to save money is by cutting down on energy usage. Find tons of innovative ways to shrink your bills detailed in our energy hub here.