A leading welfare group begs government to stop stage three tax cuts


The proposed stage three tax cuts will give $14bn in relief to the country’s highest earners and “exactly nothing” to the 20 per cent who need it most, according to leading welfare group.

Anglicare Australia is again calling on the Albanese government to axe the cuts, legislated under the Morrison government and to come into effect next financial year. Labor promised at last year’s election it would not remove the tax cuts.

“When the tax cuts were passed, we were told they would help average Australians. Our analysis shows that’s not true,” Anglicare Australia executive director Kasy Chambers said.

“Instead the tax cuts will go to people on the very highest incomes. The top 20 per cent of income earners will take up 80 percent of the cost.

“The bottom 20 percent will get exactly nothing.”

Camera IconLow-income earners will largely miss out on any benefits from the stage three tax cuts. NCA NewsWire / Dylan Coker Credit: News Corp Australia

Anglicare on Thursday is releasing A Costly Choice, a report showing that Australia already loses billions of dollars each year on tax breaks and concessions that benefit people on the highest incomes.

“That comes on top of a tax system that’s already unfair,” Ms Chambers said.

“Our research shows that Australia already spends $72bn each year on tax benefits for the top 20 per cent of income earners. That includes concessions and

discounts for properties, investment homes, superannuation, and trusts.

“These tax cuts would add another $14 billion to that number.

“Instead of helping people doing it tough in the midst of a historic cost-of-living crisis, the tax cuts will make Australia more unequal and more unfair.”

She said Government should act now and stop these changes before they start.

“Failing to act would be a costly choice for all Australians.”

Camera IconThe study shows big concessions for properties and investment homes. : NCA NewsWire / Gaye Gerard Credit: News Corp Australia

A Costly Choice shows that:

▪ The cost of concessions for properties, investment homes, superannuation, and trusts has spiralled to


▪ Much of that cost, $72.38bn, will go to the wealthiest 20 per cent of Australians.

▪ Just $4.2b (3 per cent) will go to the bottom 20 per cent of income earners.

▪ Another $17.7bn will be spent on the next round of tax cuts.

▪ $14.1bn of that cost (80 per cent) will go to the wealthiest 20 per cent. None will go to the bottom 20 per cent.

Work Place Laws
Camera IconMiddle income workers will get a modest outcome from the stage three tax cuts. NCA NewsWire / Nikki Short Credit: News Corp Australia

The tax cuts, due to come into effect in July 2024, are part of changes to the tax regime implemented by the Morrison government and largely affect medium to high-income earners.

Stage three involves abolishing the 37 per cent marginal tax bracket for those earning $120,000 to $180,000 and creating a flat rate of 30 per cent for those earning between $45,001 and $200,000.

The Stage 3 tax cuts are set to cost $254 billion over ten years.

Treasurer Jim Chalmers will hand down his second federal budget on May 9.


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