Business groups urge Labor to stick with Stage 3 tax cuts
Any changes to stage 3 tax cuts by Labor would be a “betrayal of aspirational Australia,” the Coalition has warned, as business groups say the case for the reform is “stronger than ever”.
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Any changes to stage 3 tax cuts by Labor would be a “betrayal of aspirational Australia,” the Coalition has warned, as business groups say the case for the reform is “stronger than ever”.
Anthony Albanese has come under fire for his choice of words on Wednesday when he refused to specifically “promise” the federal government would deliver the income tax changes in full, and instead stuck to the line Labor’s position had not changed.
Appearing on the ABC, the Prime Minister was asked multiple times if he would confirm the cuts would arrive as legislated on July 1.
“I have said we haven’t changed our position,” an agitated Mr Albanese replied.
“Nothing has changed, the government has exactly the same position.”
Labor went to the last election backing stage 3, which effectively means the vast majority of Australians would pay no more than 30 cents in the dollar in income tax.
Higher earners are expected to benefit the most from the changes because they also pay more tax.
A person earning $90,000 a year would save about $1,125, a worker earning $150,000 would save $3,975, and someone on $200,000 would save $9,075 in tax.
A worker on $50,000 would save about $125.
Coalition treasurer spokesman Angus Taylor said the Prime Minister was using “weasel words” to avoid explicitly committing to stage 3.
“The Prime Minister and the Treasurer’s secret plans to scrap the stage 3 tax cuts is a betrayal of aspirational Australia,” he said.
Mr Taylor said Stage 3 tax cuts ensured most Australians earning more than $45,000 would be able to earn more without the “fear of facing higher taxes”.
“Bracket creep is the thief in the night,” he said.
“We should be rewarding Australians for their hard work, not punishing them.”
Business Council Australia chief executive Bran Black also said bracket creep was a “tax on ambition” and the government needed to deliver the Stage 3 changes “as promised in full”.
“We need a more competitive and simpler personal tax system that provides an ongoing incentive for Australians to work,” he said.
“Australians already pay a lot of tax and as our population ages there will be pressure on working people to pay even more to fund the services required.”
Australian Industry Group chief executive Innes Willox said the argument for Stage 3 to go ahead as proposed in 2019 was “stronger than ever” in 2024.
“They provide widespread economic benefits by kicking in at $45,000,” he said.
“Taxpayers have been patiently waiting for these tax cuts for five years and have factored them into their household budgeting.
“To not implement them as repeatedly promised by both major parties would risk being seen as a clear breach of faith with millions of Australian taxpayers.”
Mr Willox said the tax cuts had also already been factored into both the budget and Reserve Bank’s growth and inflation forecasts.
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Originally published as Business groups urge Labor to stick with Stage 3 tax cuts
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