High-earning Australians are expected to be hundreds of dollars better off each pay cycle compared to low-income workers under the controversial stage three tax cuts, according to a new analysis.
The report from Anglicare Australia, which is calling for the plan to be dropped in favour of , came as Treasurer Jim Chalmers met on Thursday with Labor backbenchers who want more relief to be delivered.
People earning more than $180,000 a year will be better off by $233.65 per fortnight while those earning over $200,000 will gain $349.04 per fortnight, the report found.
Anglicare Australia executive director Kasy Chambers said someone on an average annual income of $60,000 will receive just $14 a fortnight, while a person on an income below $40,000 will get no benefit at all.
Source: SBS News
The move will lower the 32.5 per cent and 37 per cent marginal tax rates to 30 per cent, at an expected cost to the public purse of more than $240 billion over 10 years.
"There is no excuse for ignoring Australians doing it tough at the same time as spending a quarter of a trillion dollars on tax cuts," Chambers said.
The report showed the projected fortnightly tax benefit of $233.65 for those earning over $180,000 would cover the cost of an average tank of petrol, car insurance payment, mobile phone bill, and a modest selection of groceries for those doing it tough.
Polls show stage three tax cuts are not popular with the public and cost of living relief is the priority of Australians.
A published on Tuesday found that of 1,151 respondents of voting age, some 80 per cent believe the tax cuts should be deferred for those earning more than $200,000, overhauled to benefit low-and middle-income earners, or scrapped. It came after an October poll by found that about two-thirds of the 1,600 adult respondents thought the plan should be revised or axed.
"Australians understand that these tax cuts are unfair. That's why poll after poll shows that people want them scrapped. Even those who are set to benefit the most say they don't want them," Chambers said.
"It's time to scrap these tax cuts and give Australians in need the cost of living relief they're crying out for."
Treasurer Jim Chalmers insists the stage three tax cuts will go ahead as planned. Source: AAP / Dan Himbrechts
"And we are," Chalmers said. "People on lower and middle incomes are the primary focus of our ."
He said the government had no plans to revisit changes and that they are "baked in" to the Reserve Bank of Australia's inflation forecasts. The central bank predicts inflation will fall to about 3.5 per cent by the end of 2024, and return to its target band of 2-3 per cent by the end of 2025.
Chalmers said his "colleagues know that we are delivering relief already". When asked by host Patricia Karvelas if he was willing to give them a guarantee there would be extra cost of living relief, he did not answer directly and instead mentioned already-announced measures, including electricity bill relief, , , and that .
"I think it's a good thing that people are advocating on behalf of their communities and because of that, we've got this tens of billions of dollars of relief we're rolling out right now."
