Natalie Barr has revealed how millions of Australians could be worse off if the stage three tax cuts are dumped – while Anthony Albanese is being pressed to reassure workers the changes will come into effect.
The Prime Minister on Monday reaffirmed his government’s position on the tax cuts, due to come into effect on July 1, “has not changed” after facing pressure from his own party to scale them back.
There were fears that Mr Albanese could bow to pressure and bungle the policy, prompting the opposition to accuse him of “taking people’s money”.
The third tax cut will eliminate the 37 percent tax cut that applies to people with incomes between $120,000 and $180,000.
The Coalition-approved reforms will also apply a 30 percent rate on all income between $45,000 and $200,000.
Natalie Barr discussed the third phase of the Government’s tax cuts with Nationals MP Barnaby Joyce and commentator Cath Webber on Sunrise on Monday morning
The biggest benefit from the cuts would accrue to Australians who earn the most and pay the most taxes (stock image)
The biggest benefit from the cuts would go to Australians who earn the most and pay the most taxes.
Barr pointed out that millions of middle-income Aussies could save up to $1,300 at tax time.
“New analysis also shows that nearly 700,000 workers are now in the top tax bracket,” the Sunrise host said Monday.
“That’s three times as much compared to when that threshold was last raised in 2019.”
She asked her guest MP Barnaby Joyce “how important” the tax cuts were to Australians.
Mr Joyce said he wanted Labor to keep its promise to commit to austerity and demanded the government “give money back to the Australian people”.
“This isn’t the government’s money, it’s your money, your effective tax rate has gone up,” he said.
‘That’s why the government takes more of your money. The three state tax cuts are about giving some of your money back to you.
“We have to start returning the money. If we don’t, it’s a scam, a slow-burn scam on the Australian people.
The Prime Minister on Monday reaffirmed his government’s position on the tax cuts, due to come into effect on July 1, “has not changed” after coming under pressure from his own party to scale them back.
‘It also means that you don’t have to work for yourself, but on Monday, Tuesday and possibly part of Wednesday for everyone else.
“I want to go to work like everyone else, stacking bricks, fixing plumbing, behind the counter at a bank, or pulling sheep out, working for yourself, for yourself, not for the government.”
With the new tax cuts, those earning $100,000 will save $1,375 in taxes, while those earning $150,000 will save $3,975. Those with an income of $180,000 can save $6,075 and earners with an income of $200,000 will save more than $9,000.
Those at the other end of the spectrum with an income of $40,000 will see no difference in taxes under the new policy.
“The government’s position has not changed,” Albanese said on Monday.
‘Inequality is an issue and the government has looked at ways in which we can improve that position.
‘That is why measures such as strengthening Medicare, the measures we have for cheaper childcare, are all aimed at improving that position.
“Please note that phase three tax cuts start at $45,000. If that is your annual income, you are certainly not rich.’
The Prime Minister said he understood many Australians were struggling amid the country’s ongoing cost-of-living crisis, and said Labor would continue to look at a full range of relief measures in its May budget.
He said reducing inflation remains his top priority for 2024 and announced Monday a meeting with former Labor Secretary Dr. Craig Emerson, who will lead an independent inquiry into food and grocery prices.