What scrapping tax cuts would really mean for Victorians

Scrapping stage 3 tax cuts would leave voters in several Victorian electorates out of pocket – but it’s not the richest with most to lose.

Prime Minister Anthony Albanese says the government is still committed to the tax cuts. Picture: Gary Ramage

Abolishing the stage 3 tax cuts would overwhelmingly affect voters in seats held by Labor, Teal and Greens MPs, an analysis of their electoral fallout has found.

None of the Victorian seats with the most people who would lose out if the cuts are scrapped are held by Liberal Party.

The Albanese government has signalled in recent days that it is considering breaking its election promise to retain the stage 3 tax cuts, which would give everyone who earns between $45,000 and $200,000 more money and come into effect in July 2024.

It has been cheered by the Greens, who want them dumped.

The tax cuts are unpopular with Teal MP Monique Ryan in Kooyong, while North Sydney MP Kylea Tink has not backed them.

Tax Office data shows the 10 seats in each state with the most to gain are either wealthy, such as Goldstein, Higgins and Kooyong in Victoria or Warringah in NSW, or aspirational, such as Lalor, Gellibrand or Greenway.

In Victoria, the seats with the most taxpayers set to lose are Macnamara, Melbourne and Higgins, which are held by Labor and the Greens.

The story is the same in NSW where Sydney and Greenway are held by Labor, and Warringah is held by Teal Zali Steggall.

Queensland is similar, with Greens-held Brisbane and Griffith, and Lilley, held by Sports Minister Anika Wells.

Shadow Treasurer Angus Taylor says millions of aspirational families will miss out on thousands of dollars if the promised tax cuts are scrapped. Picture: Gary Ramage

Of the five South Australian seats with the most voters who would pay more tax if the cuts were scrapped, only one is held by a Liberal – James Stevens in Sturt.

Across Australia 7.9 million taxpayers stand to benefit.

Asked on Friday if the government was still committed to the tax cuts, Mr Albanese said the position had not changed.

But he added: “there’s been meetings, obviously, this week about ERC and our processes.”

“We’ll continue to get on with making sure that we deliver a budget that is responsible, that acknowledges the pressures that are on it,” he said.

Shadow Treasurer Angus Taylor said Labor was looking for any excuse to ditch its commitment to the tax cuts.

“Millions of aspirational families right across the country will miss out on potentially thousands of dollars – their own hard-earned money they’re rightly entitled to – while tens of thousands of Australians living across Australia, including in the suburbs would be worse off if Labor breaks its promise,” he said.

Originally published as What scrapping tax cuts would really mean for Victorians