Richmond Labor MP Justine Elliot said that the Albanese Labor Government is delivering a tax cut for every taxpayer on the North Coast starting on 1 July 2024.
‘Labor’s new tax cuts are designed to provide cost-of-living relief to middle Australia while making our tax system fairer,’ she said. ‘Around 71,000 people, every taxpayer on the North Coast, will receive a tax break from 1 July 2024 under Labor’s better tax cuts announced by the Prime Minister and Treasurer.
‘The average tax cut will be $1,384 for locals and around 61,000 people, or 87 per cent of taxpayers, will receive a bigger tax cut than they would have under the plan Scott Morrison legislated five years ago.’
Mrs Elliot says the average Australian wage earner on $73,000 per annum will receive a tax cut of $1,504 which is more than $800 extra in their pocket each year than they would have received under the Liberals and Nationals.
‘This is about more help with the cost-of-living and more help for middle Australia,’ she said. ‘We’re delivering more help for working families and more help for Australians already under the pump from the cost of living, putting cash back into people’s pockets when they need it most.
‘Our tax cuts are about ensuring more workers on the North Coast can keep more of what they earn because we know that will take pressure off people doing it tough.’
To see how you will be affected by the latest tax cuts announcement, there is a calculator on the Treasury website: www.treasury.gov.au/tax-cuts/calculator.
Australia Institute response
Progressive public policy think tank the Australia Institute has also welcomed the tax cuts announcement, saying the modifications to the Stage 3 tax cuts will make them fairer, despite the political risks to the Albanese Government.
In a statement the Australia Institute said, ‘Over the past five years, our research led the case to change the Stage 3 tax cuts, and the federal government has listened.
‘Low and middle income Australians will be $84 billion better off over the next ten years thanks to changes to the Stage 3 tax cuts, while high income earners will “only” receive $4,529 instead of the $9,000 promised by Scott Morrison.’
According to the think tank, ‘The tax cuts will be better and fairer — everyone earning under $146,500 will be better off. The 37 per cent tax bracket will be retained, ensuring our income tax system won’t be “flattened” and preserving the progressive nature of our income tax system that protects against entrenched inequality.
‘All Australian workers will receive a tax cut – and those cuts will be distributed far more evenly across our community rather than concentrated on our highest income earners.’
The Australia Institute also noted that the proposed tax changes still need to be legislated in parliament, saying ‘The Dutton Coalition has already said they will vote against the changes, and there is already a fierce backlash from the business lobby to protect the tax cuts for high income earners.’
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