Treasurer Jim Chalmers says the Albanese Government’s stage 3 tax cut changes will boost the nation’s workforce by the equivalent of 25,000 full-time jobs, while the Coalition argues the overhaul will reduce workers’ aspirations. Source: The Age.
The stage 3 changes unveiled by Prime Minister Anthony Albanese last week mean the 37 per cent tax bracket will remain for earnings between $135,000 and $190,000 and the 19 per cent rate will be reduced to 16 per cent for earnings below $45,000, while the 45 per cent bracket will kick in for earnings above $190,000.
In a speech to the McKell Institute in Brisbane yesterday, Mr Chalmers said the changes would boost incentives to work, particularly for lower-income earners, when they came into effect on July 1.
“Treasury estimates our changes will increase labour supply by around 930,000 hours per week,” he said.
“That’s the equivalent of 25,000 full-time jobs, which is more than double the labour supply impact of the old stage 3.”
The Treasurer said the changes will help 5.8 million taxpaying women, providing a larger tax cut than they would have received under the original scheme.
Opposition Leader Peter Dutton said many would be worse off. Treasury analysis showed that anyone earning more than $150,000 would receive a smaller tax cut than originally planned, and those earning $200,000 will have their tax cuts halved, falling from almost $9100 to $4529.
“Jim Chalmers is on this crusade to be Robin Hood. And in the end, all they do is kill aspiration, investment,” he said on radio station 2GB on Thursday.
Mr Chalmers said the tax overhaul would provide cost-of-living relief to those on low and middle incomes.
Tax cuts will boost workforce by 25,000 full-time jobs, says Chalmers (By Rachel Clun, The Age)