Workers earning $200,000 and above will receive a $9075 benefit from the stage three tax cuts due to come into effect in July. Debate about the cuts has focused not only on fairness – the highest earners will get the biggest benefit in dollar terms – but also the broader issue of Australia’s reliance on personal income taxes as a portion of overall revenue, tax experts say.

The stage three cuts – announced in the 2019 federal budget and due to come into effect from July 1, 2024 – reduce the 32.5 per cent tax bracket to 30 per cent and abolish the 37 per cent tax rate, meaning people earning between $45,000 and $200,000 will have a marginal tax rate of 30 per cent.