Advertisement

Charity wants tax cuts switch to ease cost of living

Stage three tax cuts will soon mean Australia's highest earners better off while leaving those struggling with cost of living behind, Anglicare says.

Stage three tax cuts will soon mean Australia's highest earners better off while leaving those struggling with cost of living behind, Anglicare says. Photo: Getty

Social advocacy group Anglicare has flagged what it says are fundamental flaws in upcoming stage three tax cuts during a cost of living crisis.

Its report, Trickle Up, released by the group on Thursday, compared the benefits reaped by the highest earners from the cuts, to the relief that could be provided to those who need it.

The report found people earning more than $180,000 will be better off by $233.65 per fortnight while those earning over $200,000 will gain $349.04 per fortnight.

Anglicare Australia executive director Kasy Chambers said someone on an average 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.

The controversial stage three changes were passed by the Coalition in 2019 with the support of Labor and are due to come into force in mid-2024.

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,” Ms 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.

“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,” Ms 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.”

The report will be launched during an event at Parliament House on Thursday morning.

– AAP

Topics: Tax cuts
Stay informed, daily
A FREE subscription to The New Daily arrives every morning and evening.
The New Daily is a trusted source of national news and information and is provided free for all Australians. Read our editorial charter
Copyright © 2024 The New Daily.
All rights reserved.