NSW Premier weighs in on Stage three tax cut debate

NSW families will bear the brunt of any backflip on promised stage three tax cuts by federal Labor, Premier Dominic Perrottet has claimed.

A backflip by the Prime Minister on promised tax cuts would be a “kick in the guts” to workers, said Premier Dominic Perrottet.

Anthony Albanese this week refused to rule out paring back the stage 3 tax cuts in this month’s federal budget, amid a growing push from within his party to ­instead keep extracting an estimated $243 billion from taxpayer wallets.

The tax relief package will, from 2024, reduce the 32.5 per cent tax rate to 30 per cent and abolish the 37 per cent tax rate entirely, meaning all income earners between $45,000 and $200,000 would pay only 30 cents in tax on their earnings.

For instance a teacher on $70,000 would pay $620 less a year, while an emergency worker on $90,000 would pay $1120 less.

In 2019, Labor supported the then Coalition government’s three-tier tax relief package and made an election promise to keep the third stage in place if they won government.

Treasurer Dominic Perrottet has pushed federal Labor to stick to the promised Stage Three cuts. Picture: Dylan Coker

“Breaking this promise is an all-out attack on aspiration. It would be a kick in the guts to the hardworking families of NSW,” Mr Perrottet said.

“NSW is the workhorse of the Australian economy and walking away from this promise would disproportionately impact our people.

“The people of NSW shouldn’t be penalised for having the best jobs and most advanced economy in the nation. This is demonstration that Labor can’t manage money and, when they run out, they start to come after yours.”

Federal Treasurer Jim Chalmers is under pressure to dump the cuts and boost the tax take given the current economic climate.

Mr Albanese told a Western Sydney business event on Friday that his government’s first budget would be constrained by the spiralling costs of vital public services.

“And – as I’ve said before – we are prepared to make difficult decisions,” Mr Albanese said.

Prime Minister Anthony Albanese. Picture: Gary Ramage

“We will make sure we do what we can to help families with their cost of living, in a way that doesn’t push up inflation or add pressure to demand.”

However Mr Perrottet said Labor needed to put the family budget ahead of the federal budget.

“Governments need to focus on helping family budgets, not hindering them,” he said.

“NSW is standing strong and has the fastest growing economy in the country ­because we have used our budget to help the people of NSW.

“Treasury has a narrow focus on the fiscal position, but political leaders need to have a broad focus on the big picture.

“Labor needs to decide if it stands with Treasury or the families of NSW.”

Mr Perrottet, pictured in his office in Sydney. Britta Campion / The Australian

Stage 3 delivers tax cuts to all taxpayers earning more than $45,000, which is about 10 million Australians.

Even with these tax cuts, the top five per cent of income earners would still pay one-third of all income tax taken by the government.

“This is not Labor’s money, it’s people’s money from their hard-earned wages. They were promised it back and they have the right to get it back,” Mr Perrottet said.

“There is not one household in this state that couldn’t do with more money in their budgets.

“There is no more effective cost of living measure than a tax cut which puts money back into people’s pockets.”