But the tax cut was never legislated because the Prime Minister called an election. More than half the money being put into P2P loans is coming out of bank accounts. Credit:Jessica Shapiro At the time Malcolm Turnbull told ABC radio the $4 billion tax cut would be delivered "administratively", meaning Tax Office would adjust the deduction schedules it gave to employers without legislation in the knowledge that both sides of politics supported the cut. However the Tax Office has told The West Australian that because the government has gone into a caretaker role without legislation it is unable to direct employers to deduct less tax. "On 9 May 2016 the Australian Government assumed a caretaker role. At that time relevant legislation for the personal income tax cut measure announced in the Budget had not been passed," it said in a written response. "The continuation of the targeted personal income tax cut will be a matter for the incoming government to decide."

On Thursday Mr Turnbull said legislating the tax cut would be among his first priorities on retaining office. Prime Minister Malcolm Turnbull faces an uncertain future after Saturday's election result. Credit:Andrew Meares But the Parliament is unlikely to sit until August and a quick passage through the new Senate is not assured. In the meantime employers will deduct tax as before, meaning that if the legislation is passed by the end of the financial year the three million Australians on more than $80,000 would receive the cut in their tax return after the end of the 2016-17 financial year. "If the personal income tax cut measure is legislated by the incoming government, the ATO will at that time consider the administrative approaches available to implement the new individual income tax rates that apply," the Tax Office said.

Also in limbo is the unlegislated $2.7 billion tax cut for small businesses with a turnover of less than $10 million. Their tax rate is meant to fall from 28.5 per cent to 27.5 per cent on July 1. Because the tax is collected quarterly rather than fortnightly the Tax Office has some months before it needs to set the schedule. Follow us on Twitter