Sunrise host Natalie Barr questions why the Federal Government is spending $40 million to sell the reworked stage three tax cuts to the Australian people.
Prime Minister Anthony Albanese has adjusted the tax cuts to benefit everyone, not just high-income earners, despite promising not to change the plan the coalition legislated in 2019.
Before the changes, someone making $200,000 a year would have received a tax refund of $9,075. Now they will receive $3,375 instead.
Likewise, someone who earned $60,000 under the previous tax plan would have received a refund of $375. After the change, they will get $1,179 instead.
Mr Albanese faced intense criticism following the announcement on January 25, with Opposition Leader Peter Dutton describing him as the ‘liar in the box’.
Now it has been confirmed by Finance Minister Katy Gallagher that $40 million will be spent over two financial years on an advertising campaign explaining the phase three tax cuts.
Nat Barr was joined by Neil Mitchell and media commentator Amanda Rose on Thursday morning to discuss the government’s $40 million campaign to sell the reworked phase three tax cuts.
“Why do we need someone to sell us the tax cuts we just got in our taxes?” she said.
Mitchell said the amount of money going towards the move, which Ms Gallagher described as a “public information campaign”, was “nonsense”.
“Just what we need, more spin, and I bet coincidentally all these ads are coming out right before the election,” he said.
Ms Rose agreed, saying it was ‘absurd’.
“Remember, the government said, ‘Everyone wants this, everyone needs this, this is supported,’ so why do you have to spend $40 million to convince people that you are already convinced that this had to happen ?’ she said.
“It’s absurd to spend our hard-earned money so they can look better after a backflip and a lie.
“What if they spent their own money on that?”
Mitchell said the action was purely to “win an election.”
Prime Minister Anthony Albanese has adjusted the tax cuts to benefit everyone, not just high-income earners, despite promising to maintain the cuts as they were legislated in 2019.
Ms Gallagher unveiled the $40 million campaign during the Senate estimates on Wednesday afternoon, describing it as “pretty routine”.
“We have a responsibility to ensure there is accurate information about the changes that will come into effect on July 1,” she said.
The funding has been allocated for the next two financial years.
It comes after Dutton confirmed he would not stand in the way of Albanese’s reworked tax cuts, despite heavy criticism of the prime minister over his broken promise.
“We support this change, not to support the Prime Minister’s lie, but to support those families who need help now, because Labor has made decisions that have made things much harder for those families,” he said.
“We will be pursuing important tax policies heading into the next election that will reduce taxes for Australian taxpayers, because we know significant support will be needed to help Australian families recover from this period of labor.”
What Mr Dutton’s tax policy might look like will only be revealed closer to the next election.