Part of the Government's unlegislated proposed income tax cuts --Stage 3(a)-- will benefit mostly wealthy people, will cost Australia $95 billion over 5 years, and will erode Australia's progressive tax system.
These tax cuts do not come into effect until 2024, yet the Government is proposing to rush them through the Parliament in July this year.
Locking in such expensive long-term tax cuts now is fiscally irresponsible. There is no way of knowing what the economy will look like in 2024 and the economic conditions my be substantially different.
The proposed tax cuts heading for the Senate will happen in three stages. It is the Stage 3(a) tax cuts that are the most unfair and expensive elements of the income tax plan, specifically:
- This stage decreases the 32.5 per cent personal income tax rate to 30 per cent
- More than half of the benefit goes to the top 20 per cent of taxpayers
- These tax cuts will not come into effect until 2024-25 and will cost the budget $95 billion over five years.
These tax cuts will only further entrench inequality in Australia. Furthermore, in a time of sluggish economic growth, low- and middle-income taxpayers are more likely than high-income taxpayers to spend their tax cuts and stimulate the economy, while this tax cut targets high-income taxpayers.
Add your name to the call on the Senate to block these tax cuts for those on high incomes
We the undersigned urge you to oppose stage 3(a) of the proposed income tax cuts, announced in the 2019 Budget.
Sign on to the petition here --