The government’s latest forecast suggests Australians will have to wait until 2018 before receiving their full return.
But it also warns that it will take until 2026 to see a reduction in the amount Australians pay in tax, which is already happening.
Ahead of the release of the Budget, the treasurer’s office released a blog post warning of the challenges ahead for tax reform and the government’s commitment to make a fair return.
“The budget is designed to provide certainty to taxpayers and their families,” the blog post said.
“The Government’s tax reform plan will deliver a fairer, more predictable, more effective and more secure tax system for all Australians.”
The budget was released with a new tax policy, a $2,500 discount for taxpayers making under $200,000, and an increase in the top rate of tax from 35 per cent to 39.6 per cent.
The tax policy includes a $1,000 rebate for small businesses and businesses with under $50 million in taxable income.
But the Government is also introducing a new income tax system to be rolled out over a 10-year period.
And it is introducing a $15 flat rate for taxpayers who are earning more than $100,000 a year.
These changes come after months of intense lobbying by the major business lobby group, the Australian Industry Group (AIG).
The budget also included a $100 million plan to help small businesses, including a new $1 million incentive for employers to offer a tax break to employees for work done in a business.
At the same time, the Government also announced it would offer a $25,000 tax rebate for people who work as a hobby, travel or otherwise use a vehicle to get around.
The government says the changes will boost productivity and help businesses stay competitive.
It says it is also increasing tax concessions for those who pay more than a certain threshold for their income tax and corporate tax.
Labor wants to change the tax code to simplify the tax system, with a $500 tax holiday on investments and a $10,000 refund for business owners with an annual turnover of more than 100,000.
However, it is unclear how the Coalition will get its tax reform bill through Parliament.
The Coalition has already committed to a $40,000 income tax cut for all households and $10 million a year in tax relief for small business.
The opposition is also seeking to abolish the top tax rate for earners, the top income tax bracket and abolish the corporate tax rate.
Despite the Coalition’s promise, it has also announced that the Government will allow some people to deduct some tax from their income, including the mortgage interest tax credit.
Read more from the ABC’s Politics.