The proposed stage three tax cuts will give $14bn in aid to the nation’s highest earners and “exactly nothing” to the 20 per cent who want it most, in keeping with main welfare group.
Anglicare Australia is once more calling on the Albanese authorities to axe the cuts, legislated beneath the Morrison authorities and to return into impact subsequent monetary 12 months. Labor promised ultimately 12 months’s election it will not take away 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 government director Kasy Chambers stated.
“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.”
Anglicare on Thursday is releasing A Costly Choice, a report exhibiting that Australia already loses billions of {dollars} every year on tax breaks and concessions that profit individuals on the best incomes.
“That comes on top of a tax system that’s already unfair,” Ms Chambers stated.
“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 stated Government ought to act now and cease these adjustments earlier than they begin.
“Failing to act would be a costly choice for all Australians.”
A Costly Choice exhibits that:
▪ The value of concessions for properties, funding houses, superannuation, and trusts has spiralled to
$128.26bn.
▪ Much of that value, $72.38bn, will go to the wealthiest 20 per cent of Australians.
▪ Just $4.2b (3 per cent) will go to the underside 20 per cent of revenue earners.
▪ Another $17.7bn can be spent on the subsequent spherical of tax cuts.
▪ $14.1bn of that value (80 per cent) will go to the wealthiest 20 per cent. None will go to the underside 20 per cent.
The tax cuts, attributable to come into impact in July 2024, are a part of adjustments to the tax regime applied by the Morrison authorities and largely have an effect on medium to high-income earners.
Stage three entails abolishing the 37 per cent marginal tax bracket for these incomes $120,000 to $180,000 and making a flat charge of 30 per cent for these incomes between $45,001 and $200,000.
The Stage 3 tax cuts are set to value $254 billion over ten years.
Treasurer Jim Chalmers will hand down his second federal price range on May 9.
Source: www.perthnow.com.au
