Australians struggling with the cost of living crisis have criticised Anthony Albanese after he claimed new tax cuts would “hit the mark” during a visit to a popular restaurant.
The Prime Minister visited Sweet Magic, an Indian candy factory in Melbourne’s west, on Sunday to support stage three of tax cuts coming into effect on Monday.
Australians earning more than $45,000 will pay less tax as the 37 per cent tax bracket is abolished.
The change means that low- and middle-income people earning between $45,001 and $200,000 will pay taxes at a marginal rate of 30 percent.
Albanese later livened up the visit with a post about X as he doubled down on his commitment to providing much-needed cost-of-living relief to Australian families.
“Just like the desserts here at Sweet Magic, our tax cuts will hit the sweet spot,” she captioned the photos.
“Cost of living relief for all taxpayers, while reducing inflation pressure.”
But the post left a bitter taste in the mouths of hundreds of furious Australians who expressed outrage at the comments.
Many have been worse off financially for some time.
“Twelve months too late, welcome to your minority government, Mr Albanese,” fumed one commentator.
Prime Minister Anthony Albanese (pictured centre) has been criticized for promoting the government’s tax cuts, while visiting an Indian sweet shop in Melbourne on Sunday.
Another added: “My electricity went up $2,000 last year, the cost of everything else went up 10 percent.”
A third wrote: ‘Tax cuts that benefit the rich much more? Meanwhile, underfunded schools and hospitals struggle to provide services.’
Other cost-of-living measures that will go into effect include the $300 energy rebate the treasurer announced in the budget and a pay increase for low-income workers.
The Prime Minister denied the policies would overstimulate the economy and said the changes would help reduce inflation.
“That’s our goal here – to make sure we overcome the short-term problems posed by cost of living pressures on families,” Mr Albanese said.
“But we also want to make sure we have the right economic setup, which is why we’ve produced those budget surpluses, which puts downward pressure on inflation.”
He said the Sweet Magic factory was an appropriate place to talk about the government’s economic plans “because our goal is to hit the sweet spot.”
“The sweet spot for putting downward pressure on inflation while easing the cost of living,” he said.
‘Tomorrow will be a big day: 2.6 million people on fixed wages will get a pay rise and 13.6 million Australian taxpayers will get a tax cut.’
Hundreds of Australians who commented on the social media post were unimpressed by Albanese’s comments, with many saying they had been in a worse financial situation for some time (file image)
The third-stage tax cuts come after the federal government made a sensational about-face on policy introduced by the previous Liberal government in 2019.
The 30 percent tax rate is a reduction from the 32.5 percent rate in effect under the original policy.
Australians earning $45,000 will save $804 thanks to the renewed tax cuts, while those earning more than $200,000 will now only get back $4,546 instead of $9,075.
Fears that the RBA would raise rates from 4.35 percent, the highest level since late 2020, increased after the CPI indicator for May hit 4 percent.
Treasurer Jim Chalmers said he expected inflation to remain subdued, despite the May and March quarter figures of 3.6 per cent, above the RBA’s target of 2 to 3 per cent.
The Australian Bureau of Statistics will release key June quarter figures on July 31, just days before the RBA’s next board meeting on August 6.
RBA Governor Michele Bullock has consistently said the RBA would raise rates again to control inflation if necessary.
The opposition went on the attack on Sunday, with senior MP Michaelia Cash saying the government’s package would do nothing to help Australians.
“In the real world, when Australians wake up today, they’re going to have a very tough time as a result of the policies of this government,” he told Sky News.
The shadow treasurer, Angus Taylor, blamed the inflation on the government.
“The Albanese Labor government has completely failed to address the source of Australia’s cost of living crisis – inflation,” Taylor said in a statement.
‘We are in a deep-rooted cost of living crisis with no light at the end of the tunnel under the Labour government.
Mr Chalmers acknowledged that many households were “under pressure” due to the pressures of higher costs of living and interest rates.
“We are confident, but not complacent, that we can overcome this inflationary challenge,” Chalmers said.
He warned Australians should not expect reducing inflation to be easy.
But our role is to try to make life a little easier for people.
The Prime Minister said the tax cuts would “hit the sweet spot” in a social media post (pictured) uploaded to X on Sunday.
“That’s why tax cuts, energy bill relief, wage increases, cheaper medications, paid parental leave, that’s what it’s all designed to do.”
Meanwhile, all federal politicians will receive a pay rise on Monday following the decision of the independent arbitrator, the Remuneration Tribunal.
Mr Albanese will receive a pay rise of $20,543, taking his annual salary to $607,500, while Deputy Prime Minister Richard Marles will receive a rise from $16,197 to $478,983.
Opposition Leader Peter Dutton will receive a pay rise of $14,617, taking his annual salary to $432,250.
