High cost of tax tactics: Battlers dudded $16,000
BATTLERS in Logan, Ipswich and Caboolture risk losing big bucks if tax cuts are held up in the Senate this week. But a powerful new voting bloc if forming which could the cuts through even if Labor stands in the way.
Workers earning $65,000, the average annual income for people in electorates taking in Logan, Ipswich, Caboolture and western Queensland, will pay $1000 more tax each year without the tax cuts and $1500 more from 2024.
It comes as the new crossbench powerbrokers who will determine if the cuts pass - Senators Jacqui Lambie, Rex Patrick and Stirling Griff - put on a show of solidarity on the first day of the 46th parliament on Tuesday.
Offsets of up to $1080 will be able to be claimed back on tax from as early as next week if the cuts are passed through the Senate either tomorrow or Friday.
Senator Lambie, whose vote is key to the cuts passing if Labor won't support the full plan, is keeping the Government guessing as to how she will vote.
But the Coalition is hopeful she will come on board after she declared the lowest paid workers wanted a tax cut "now".
Meanwhile, Treasurer Josh Frydenberg blasted Labor as "not believing in lower taxes", using new modelling to pressure them into backing the cuts.
It shows the lowest average income earners in Queensland are in Jim Chalmers's Logan-based electorate of Rankin and Labor's last regional MP Shayne Neumann's electorate of Blair.
The average taxpayer in those seats takes home about $65,000.
Residents in the Caboolture-based seat of Longman, Logan-based Forde and western seat of Maranoa also take home just over $65,000.
Government modelling shows they would pay about $16,000 less tax over the next decade if its full tax plan is passed - including the third stage which Labor opposes.
Mr Frydenberg (pictured) said Labor was blocking tax cuts "which would benefit millions of low and middle income earners".
"Every day Labor has a new excuse for not heeding the message from the last election and passing the tax cuts Australians voted for," he said.
"Australians want lower taxes, something Labor clearly does not believe in."
The tax cut legislation last night passed its first hurdle, being voted through the House of Representatives where the Government has a majority.
Opposition leader Anthony Albanese said Labor would seek to amend the Bill, bring forward the second stage from 2022 to now, while delaying a vote on stage three.
"The Government is saying it's prepared to block tax cuts for workers now because of tax cuts that might happen, that it wants to happen, in 2025," he said. "We want every Australian worker to get a tax cut in this term."
Stage One of the tax cuts includes the offset of up to $1080, stage two raises the threshold for the middle-income tax rate, while stage three drops the tax rate for people earning $45,000 to $200,000 to 30 per cent.