The Albanese Government, in an election promise backflip, will overhaul stage 3 tax cuts, leaving most Australians with extra cash in their pocket when the measures take effect in July. Source: ABC News.
Prime Minister Anthony Albanese said the new plan taken to the Labor caucus yesterday would increase the support offered to middle Australia.
Labor MPs leaving the caucus meeting said the changes had been agreed upon.
The expected new tax cuts would mean at least an extra $800 for most Australians while the benefit for the highest earner will be halved.
Treasurer Jim Chalmers told 7.30 last night the Government had changed its view on the cuts because it had found “a better way to provide more cost of living relief to more people”.
Mr Chalmers said the motivating factor for the changes was that they would benefit “the many” rather than “the few”.
He alluded to Mr Albanese’s Press Club address today, where he was expected to reveal the tax cut overhaul in full.
“It means more help for more people, it means a tax cut for every tax-paying worker and it will be better for middle Australia, better for cost-of-living pressures, better for women and workforce participation,” he said.
“Better for nurses and teachers and truckies and, as the Treasury analysis that I release tomorrow will show, it will be better for the economy as well.”
Acknowledging the backflip on the changes already legislated, Mr Chalmers said that what is motivating Labor is that “we have listened, we know that people are under sustained and persistent cost-of-living pressure. This is about middle Australia, it’s about helping people deal with these cost-of-living pressures.”
The Liberal Party has responded with outrage at Mr Albanese breaking a pre-election promise not to touch the tax cuts, which were a signature reform of the then-Liberal government.
FULL STORY
Government to overhaul stage 3 tax cuts, Jim Chalmers says changes will benefit ‘many’ (ABC News)
RELATED COVERAGE
Anthony Albanese unveils stage three tax ambush (The Australian)
PM keeps 37pc tax bracket, helps those on less than $45,000(The Age)
