Controversial tax cuts that would benefit high earners must be scrapped to fund desperately needed cost-of-living relief, welfare advocates say. Source: The New Daily.
In a letter to Prime Minister Anthony Albanese and Treasurer Jim Chalmers, the Australian Council of Social Service has called on the Government to abandon its commitment to stage three tax cuts.
Though the policy was announced by the previous government, Mr Albanese has recommitted to it, a move ACOSS said would provide no help to those on lower incomes and instead would fuel inflation.
“Stage three is a hand up to society’s wealthiest,” ACOSS chief executive Cassandra Goldie said yesterday.
“[It will] feed inflationary spending and compound cost of living pain for people with the least.”
The tax cuts, which come into effect on July 1, will create a single tax bracket for workers earning between $45,000 and $200,000 a year.
Though workers with a taxable income above $45,000 will benefit, more than 80 per cent of the cuts will go to those in the top 20 per cent of incomes.
For example, Australians who earn more than $200,000 will take home an extra $9000 each year.
But those in the lowest third of incomes would not benefit at all, ACOSS’s letter said.
If the Government wanted to reduce financial pressure on lower-income communities it should drop the policy and redirect savings into programs, Ms Goldie said.
Mr Albanese this week reaffirmed the Government’s position on the tax cuts and said tax relief was one way to assist Australians.
Drop tax cuts, fund budget relief: Community advocates (By Kat Wong, AAP via The New Daily)
‘Tax cuts will happen’: Albanese sticks to promise on stage three tax cuts (Sydney Morning Herald)