Workers in the care economy will significantly benefit from Labor’s redesigned stage three income tax cuts, with more than 97 per cent of aged and disability carers, childcare workers and nurses receiving a bigger tax cut than under the original plan. Source: The Australian.
While the federal Government’s so-called cost-of-living tax cuts, supported by the Opposition, will provide a tax cut for every taxpayer, Treasury analysis shows that more than nine in 10 blue-collar workers, including building labourers, mechanics and police officers, will also receive a larger tax cut.
Treasurer Jim Chalmers said supporting the care economy was a principal aim for Labor’s revised stage three tax cuts and would be “a big winner” with more than 90 per cent of workers in key occupations receiving a bigger tax cut.
“The care economy is a big winner under Labor’s bigger tax cuts for more Australians,” Dr Chalmers said. “Our tax cuts are good for carers and great for the economy.
“Helping frontline workers with the cost of living is our focus, but just as importantly, our bigger tax cuts for more Australians will reward aspiration and incentivise people to work more and earn more in industries where we desperately need more workers – and that’s deliberate.”
These workers, often regarded as either working or middle class, and living in the suburbs and regions around Australia, are an essential component of Labor’s core constituency and were front of mind when redesigning the legislated tax cuts.
The service industry will also benefit from the revamped tax cuts, with Treasury analysis finding that 91 per cent of restaurant and cafe waiters, 96 per cent of retail store managers and 96 per cent of storepersons are also set to receive a bigger tax cut than the original legislated plan.
Treasury also provided analysis to the Government that the changes to the stage three income tax cuts will increase the supply of labour by about 930,000 hours per week.
Care economy workers are the big winners in the tax cuts overhaul, says Treasury (By Troy Bramston, The Australian)