Massive development for nine million Australian taxpayers as top minister vows to keep controversial tax cuts: Here’s what this means for you
- Cabinet Secretary Ed Husic defends tax cuts
- Said phase three cuts were election pledge
A cabinet minister in Anthony Albanese’s Labor government is adamant that the third stage tax cuts for the wealthy are here to stay, as they were an election promise.
Industry and Science Minister Ed Husic said dumping the policy into the May 9 budget would be a breach of voter confidence as a teal MP suggests her voters want the government to “rethink” the tax cut .
“I am firmly convinced, we have made the decision and we have expressed our position on it,” Husic told national broadcaster Patricia Karvelas on Friday.
“It’s something we take very seriously, that if we’ve said one thing in an election, we’ll make sure we honor it.
“You can’t let political parties go to an election, take a stand and then come out with it, and then take steps to try to dilute or deviate from that.
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A cabinet minister in Anthony Albanese’s Labor government is adamant that the stage three tax cuts for the wealthy are permanent, as they were an election promise. Industry and Science Minister Ed Husic (right) said dumping the policy into the May 9 budget would be a breach of trust with voters as a teal MP suggests her voters want the government to ‘rethink’ the tax cut
‘Parties have been criticized for this in the past and I would be very careful with that kind of behaviour.’
Those who earn more than $200,000 can get back $9,075, compared to now when the The number of tax brackets will be reduced from five to four from July 1, 2024 for the first time since 1984.
A new 30 percent marginal tax rate will apply to those earning $45,000 to $200,000 under a policy that former Liberal treasurer Josh Frydenberg announced in the April 2019 budget.
This will reduce the income tax burden for nine million Australians.
Someone earning $80,000, a tier below the average full-time salary of $94,000 in Australia, will get back just $875.
An Australian with $60,000 – a level slightly below the median or middle income of $62,400 – would get back $375.
While Labor supported the stage three tax cuts in opposition, an independent blue-green MP representing an affluent Melbourne electorate, Zoe Daniel, released a poll showing that 78 per cent of voters who responded wanted the stage three tax cuts were ‘reconsidered’.
“Given that a lot of those people would benefit from the tax cut, I think that’s significant,” the Goldstein member told the ABC.
Mr Husic said MPs are welcome to gauge their constituents’ views,
“I understand why they want to raise those issues, but we are committed to the election,” he said.
The Australian Parliamentary Budget Office, in response to a question from Greens leader Adam Bandt last year, estimated that the phase three tax cuts would cost $243 billion over 10 financial years from 2024-25.
Public gross debt will cross the $1 trillion mark in 2023-2024, accounting for 40.8 percent of gross domestic product.
Labor is unlikely to continue with the low- and middle-income tax offset, which provided relief for those who earned up to $126,000.
That means 4.6 million Australians earning $48,000 to $90,000 will miss out on $1,500 in aid or $1,080 plus last year’s one-off compensation of $420 in living costs.
