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Jim Chalmers: Aussies earning over $45,000 WILL benefit from tax cuts

From cleaners to CEOs…and everyone in between, how much Aussies will save when tax cuts for EVERY employee over $45,000 become law

  • ACTU had demanded from Jim Chalmers that the phase three tax cuts be scrapped by 2024
  • But the treasurer declined that request and said the cuts will remain in effect
  • Phase Three Tax Cuts Will Benefit Anyone Earning More Than $45,000 A Year

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Aussies earning more than $45,000 will see their taxes cut in 2024 after treasurer Jim Chalmers rejected union demands to cancel the upcoming cuts.

dr. Chalmers said Labor’s intention was to keep the third phase of tax cuts passed in 2019 after the country’s largest trade union group forced him to scrap them.

The phase three tax cuts are controversial because, unlike the first two phases already in effect, they will benefit the wealthiest Australians the most.

As of July 2024, a $211,250 politician will receive a $9,075 tax cut, while a $72,235 registered nurse will receive a $681 tax cut, a bus driver $461 and a chef $321.

Ahead of September’s jobs and skills summit, the Australian Council of Trade Unions (ACTU) had published a list of economic demands, including rent controls, higher taxes on corporate profits and scrapping the third phase of income tax cuts.

Aussies earning more than $45,000 will cut their taxes in 2024 after treasurer Jim Chalmers (pictured) slammed union demands to cancel upcoming cuts

Aussies earning more than $45,000 will cut their taxes in 2024 after treasurer Jim Chalmers (pictured) slammed union demands to cancel upcoming cuts

Chefs will save $321 a year when phase three tax cuts take effect in 2024

Chefs will save $321 a year when phase three tax cuts take effect in 2024

Chefs will save $321 a year when phase three tax cuts take effect in 2024

But dr. Chalmers shot down the union plan in an ABC radio interview on Thursday.

“We plan to let them sit,” he said of the cuts.

dr. Chalmers said the only tax change Labor is considering is a crackdown on corporate tax avoidance.

“We think steps can now be taken in the tax system, especially with regard to multinational tax avoidance,” he said.

“That’s where our priorities should be.”

1660191331 551 Jim Chalmers Aussies earning over 45000 WILL benefit from

1660191331 551 Jim Chalmers Aussies earning over 45000 WILL benefit from

This table from the Australia Institute shows how much Australians can expect to save on stage three tax cuts in 2024

This table from the Australia Institute shows how much Australians can expect to save on stage three tax cuts in 2024

This table from the Australia Institute shows how much Australians can expect to save on stage three tax cuts in 2024

dr. Chalmers said the ACTU’s suggestions are not in line with government policy, but they have accepted their right to submit ideas.

“The whole point of a summit like this is to bring people together to see if common ground can be found,” he told ABC Radio National on Thursday.

“It would be rather strange if we said ‘come to a summit and only bring ideas that have been pre-approved by the government’.

“That’s not in the spirit of the top, not in the spirit of the way the government operates.”

Opposition leader Peter Dutton was invited to attend the summit but said on Wednesday he would not attend, calling the event a “stunt with the unions”.

Nationals leader David Littleproud accepted an invitation.

dr. Chalmers said Mr Dutton went out of his way to divide people and ‘destroy the consensus’.

Bus drivers will save $461 a year when the phase three tax cuts take effect in 2024

Bus drivers will save $461 a year when the phase three tax cuts take effect in 2024

Bus drivers will save $461 a year when the phase three tax cuts take effect in 2024

“I think his behavior over the past few days has isolated himself, humiliated himself and already split the coalition,” he said.

But Mr Dutton reiterated his position on Thursday, confirming that he would not be attending.

“(Jim Chalmers) emailed me the invite 25 minutes later he dropped it in the press gallery so if you don’t see that as a stunt I don’t know what it is,” he told ABC radio .

“If people think this is a deal in modern times, it’s not. It’s a wish list from the ACTU about higher taxes.’

Phase Three Tax Cuts Explained

Anyone earning more than $45,000 will benefit from the phase three cuts in 2024 by creating a 30 percent flat rate between $45,000 and $200,000.

They will also raise the 45 percent threshold from $180,000 to $200,000.

Currently, income over $45,000 is taxed at 32.5 percent, over $120,000 at 37 percent, and over $180,000 at 45 percent.

Those who make more than $120,000 will benefit the most. A $211,250 politician gets a $9,075 tax cut. A registered nurse of $72,235 gets a tax cut of $681.

The changes were part of a three-stage tax reform package that was approved in 2019.

Phase two cuts, which saw Aussies earn less than $120,000, were brought forward by two years to July 2020 due to the Covid-19 pandemic.

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