Sector support for stage 3 tax cuts
Posted on 03 Feb 2024
By Greg Thom, journalist, Institute of Community Directors Australia
The not-for-profit and charity sector has thrown its weight behind changes to the federal government's stage three tax cuts but says there is still more work to do to support financially struggling Australians.
The decision to revise the stage three tax cuts caused a political storm, with the Albanese government standing accused of breaking a major election promise.
The bold move will see 11.5 million Australian taxpayers better off but halves tax cuts for more than one million people earning more than $200,000 a year
– of whom about half still support a redesign of the proposed tax cuts, according to research from the Australia Institute.
While initially opposing the new tax plan and demanding Prime Minister Anthony Albanese go to an election for lying to the nation, in a major back-flip opposition leader Peter Dutton now says the coalition will wave the revised tax legislation through federal parliament.
Though controversial, the move to amend the tax package in the name of fairness was welcomed by not-for-profit and charity organisations who have been on the frontline of helping people hit hard by the cost-of-living crisis.
“We note that all wage earners will benefit and that the new schedule is no longer skewed upwards but focused on low and mid-level wage earners. These are the average Australians struggling with the high cost of food, electricity, rents and mortgages and other essentials. “People on average incomes will see a doubling of their tax benefit and this will help create a fairer Australia, which is the focus of our advocacy positions.”
“Without these amendments, the stage three tax cuts were set to supercharge inequality, further lining the pockets of Australia's wealthiest with another $9075 they did not need while offering nothing to those on the lowest incomes bearing the brunt of a cost-of-living crisis."
“With people on low and modest incomes facing a serious cost of living crisis, we had repeatedly urged the Albanese Government to not proceed with giving the most dollars to people on the highest incomes. The changes announced today are a better deal for people earning low, modest and middle incomes, including people earning under $45,000. “We are pleased the Albanese Government has listened to the community to make the package fairer.”
“We commend the decision to change course on the stage three tax cuts. This is an important step in making the Australian tax system more equitable. We hope it generates a sharper focus across the federal parliament on what can be done to reduce poverty and grow prosperity for all.”
“Australians are being given the false impression (by the Coalition) that they would be better off under the old package. That is simply not true. Instead of helping people cope, the original design of the tax cuts would leave behind the most disadvantaged part of the country. “This is a clear choice. The Opposition can support spending on the country’s wealthiest areas – or they can back changes that give cost-of-living relief to their constituents who actually need it.”