Stage 3 tax cuts a big deal for teal voters

Any move by Labor to wind back promised Stage 3 tax cuts would land hardest on independent “teal” electorates that helped deliver Anthony Albanese to power.

Any move by Labor to wind back promised Stage 3 tax cuts would land hardest on independent “teal” electorates that helped deliver Anthony Albanese to power, as shadow treasurer Angus Taylor warned the government must “unambiguously” commit to delivering the savings.

New analysis of tax department data reveals that the NSW teal electorates of Wentworth, Warringah and North Sydney are among the top five seats that stand to benefit from the cuts, which are scheduled to come into force in July.

The other seats in the top five are Sydney, held by Labor Environment Minister Tanya Plibersek, and the West Australian seat of Curtin, near Perth, held by another teal independent in Kate Chaney.

The cuts, which will deliver benefits to all taxpayers who earn more than $45,000 a year, will be most beneficial to those earning more than $180,000, placing them in the top tax bracket.

While lower income earners have benefited from Stage 1 and Stage 2 of the cuts, which were first brought in 2018 when Malcolm Turnbull was prime minister, the third stage of tax cuts will see high income earners receive as much as $9075 back on their tax per year.

Member for Wentworth Allegra Spender.

Member for Warringah Zali Steggal.

The tax cuts will see the threshold for the top tax bracket raised to $200,000 and reduce the 32.5 per cent tax rate to 30 per cent, with the aim of stopping “bracket creep” which sees workers advance into higher tax brackets as their incomes grow with ­inflation.

The most recent ATO tax table data reveals that the eastern suburbs seat of Wentworth, where residents enjoy an average household income of $149,200, is home to 17,300 taxpayers who earn more than $180,000 per year.

Member for North Sydney Kylea Tink.

Member for Mackellar Sophie Scamp.

Wentworth, once held by Mr Turnbull, swung hard to teal candidate Allegra Spender in 2022 after being held almost without fail by Liberal MPs since 1931.

In the northern beaches seat of Mackellar, where teal independent Sophie Scamps ended decades of Liberal rule, 9700 ­locals earn more than $180,000 per year.

Nearby in Warringah, which Zali Steggal won off Tony Abbott in 2019, 15,600 locals file returns claiming income of more than $180,000, also making them eligible for the $9025 cut.

In North Sydney, held by teal Kylea Tink since 2022, 16,900 taxpayers are in line for the top tax break.

Minister for the Environment and Water Tanya Plibersek.

And in the electorate of Sydney, home to Ms Plibersek, 12,600 locals filed returns in the top bracket.

“The Prime Minister and Treasurer must unambiguously commit to delivering the Stage 3 tax cuts as legislated,” Mr Taylor said on Wednesday.

“For average wage earners, this is returning part of what’s been stolen from them through bracket creep (which) is the tax increase Australians never voted for.

“In Labor’s first 18 months in office, income taxes have gone up by over 27 per cent, according to National Accounts data.”
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Originally published as Stage 3 tax cuts a big deal for teal voters