Close to 8 million individuals received tax cuts in recent months, partially on the hope that an extra $760 boost would increase local spending. According to the ATO, people in the low-to-middle income bracket received up to $1080 extra throughout the year, as a result of tax relief initiatives. The programme is also expected to boost local employment, while providing some support for people who are facing financial struggles during the pandemic.
As COVID-related restrictions stalled the economy, the government sped up its tax cut programme, now in its second stage, for around 11.6 million people in total. This support could help revive the GDP, and preserve some measure of momentum as the country looks ahead to a post-pandemic recovery.
Alongside this tax deduction, the Australian government has encouraged Australian residents to engage in local tourism. The government has spent $5 million on advertising to bring people outdoors again in support of the local tourism economy. With many tourist hot-spots hit hard from border closures and COVID restrictions, this initiative is designed to promote holidays such as camping and caravan trips.
As opposed to travel vouchers, tax cut claims for accommodation and tours from camp or caravan trips has been proposed to help local tourism. According to Tourism Reach Australia, 44% of all holiday nights were from camping and caravan trips – a particularly popular option from September to December last year. Local tourism supports slightly over half a million jobs in Australia, and is worth around $100 billion to the economy.