Labor not ruling out stopping tax cuts
TAX cuts of up to $1080 passed the Parliament last week, but average, hardworking Aussies could end up paying hundreds of dollars more tax in a few years with one simple change.
While Labor voted in favour of the full tax cut package, Opposition leader Anthony Albanese has yet to rule out a future Labor government repealing stage three of the tax cuts.
Under stage three of the tax cuts plan, which begin from 2024, there will be one rate of tax for people earning from $45,000 and $200,000, with that rate dropping from 32.5 per cent to 30 per cent.
It means someone earning $50,000 a year, such as a hospitality worker, would pay $125 more tax from 2024 if stage three is repealed, based on analysis of Budget data.
A teacher with a few years experience earning $80,000 a year would pay $875 more tax.
A tradie taking home $100,000 a year would be paying $1960 more to the government each year.
Mr Albanese yesterday called again for stage two of the tax cuts to be brought forward, but took a swipe at the third stage, which will cost $95 billion.
"We support a progressive tax system. We also support a system whereby we're able to properly fund schools and hospitals and infrastructure," he said.
He also said Labor's policies on negative gearing and franking credits taxes remain under review.
"We will make announcements down the track about those policies."
Treasurer Josh Frydenberg said Labor appeared open to rolling back the third stage of the tax plan.
"This is a simpler, flatter, stronger tax system. As a result there will be incentives to work that extra job, or that extra shift," he said.
"People will be able to earn more and keep more of what they earn."