Stage 3 tax cuts legislation to enter Parliament today
The Treasurer has warned the Coalition and Greens not to stand in the way of its revised tax relief plan.
Treasurer Jim Chalmers will introduce the legislation for Labour’s overhauled stage 3 tax cuts into Parliament today, with the Treasurer aiming to pass the bill as soon as possible.
Dr Chalmers said Labor has made it clear it wants to see the legislation passed quickly to enable taxpayers to plan for the tax relief that they’ll be receiving from 1 July.
Labor’s changes to the stage 3 tax cuts will see the lowest rate of income tax reduced from 19 per cent down to 16 per cent for taxpayers earning less than $45,000.
The second tax rate will be reduced from 32.3 per cent down to 30 per cent. The threshold for the 37 per cent tax rate will be increased to $135,000, while the threshold for the top tax rate of 45 per cent will be increased to $190,000 from the current $180,000.
The Treasurer has urged both the Coalition and the Greens not to stand in the way of the changes, following criticisms from the Coalition that the revised tax cut policy will exacerbate bracket creep.
“The Coalition has the legislation, they have the detail, they have no more excuses. I say to the Coalition – don't stand in the way of a bigger tax cut for more people to help with the cost of living,” Dr Chalmers said in a press conference yesterday.
“This is about more tax relief for more people, for every Australian taxpayer, and the Coalition and the Greens in the Parliament should support it.”
Greens Leader Adam Bandt previously stated that the revised stage 3 tax cuts failed to go far enough in delivering fairness for low and middle-income earners.
“The Greens have kept up the pressure on Labor’s unfair original tax plan from day one, and as this legislation works its way through Parliament, the Greens will fight for more for low and middle income earners who are struggling under Labor’s housing and rental crisis,” Mr Bandt said in a statement.
“Why is Labor expecting people to be happy with an additional $15 a week, when rents have gone up by about $100 a week under Labor's housing and rental crisis and mortgages almost $200 a week?
“Labor claims there’s only $15 a week extra for middle Australia, no money to raise the rate of Centrelink and no money to get dental and mental health into Medicare, while forging ahead with a $4500 tax cut for every billionaire and politician.”
Dr Chalmers stated that the Labor had already funded a permanent increase to JobSeeker, a permanent increase to Commonwealth Rent Assistance and funded electricity bill relief.
“We understand and we listen respectfully when, whether it's parliamentarians or others in the community, make suggestions about the next Budget and call for various things to be in the next Budget, we listen respectfully to that, but the cost‑of‑living relief which is already flowing is targeted to people who are doing it the toughest already,” he said.
“This is about the tax system. This is about more relief for more people to deal with the cost‑of‑living pressures that we know that they're under, and voting against what we are proposing means we go back to what Scott Morrison was proposing which is that people under 45 grand get absolutely nothing.”
Dr Chalmers said the revised policy would deliver a tax cut for every Australian taxpayer right up and down the income scale, but with a bigger emphasis on middle Australia.
“We want to see the tax changes that we've proposed legislated by the Parliament. I'll be introducing the legislation at the earliest opportunity,” he said.
“People shouldn't be standing in the way of bigger tax cuts for more people to help with the cost of living.
“This is an important test, I think, for the other members of parliament. Will they put tangible benefits for the workers and families and communities of this country before their own political self‑interest? That's the test and I say to the Greens that voting against Labor's cost‑of‑living tax cut means voting for Scott Morrison's stage three tax cuts from five years ago.”
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