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Key Points
- Prime Minister Anthony Albanese is hopeful his government’s changes to stage three tax cuts will pass parliament.
- Under the amended scheme, workers earning less than $150,000 will receive a larger tax cut.
- The changes will need the support of Senate crossbenchers to be legislated before the cuts come into effect in July.
“We’re being very cautious about spending, because the challenge for us is to assist people in the immediate without being counterproductive, and if we just increase spending then it can be counterproductive.”
Source: SBS News / Kenneth Macleod
Albanese said no consideration was made to alter the tax cuts ahead of the May 2023 budget, and that cabinet had agreed to the proposal on Tuesday.
Albanese flagged consideration would be made for further cost-of-living support measures ahead of the 2024 federal budget.
Opposition says prime minister is in ‘panic mode’
“When the government came into power, they abolished the low and middle-income tax offset, which means that people on low and middle-incomes now are paying more tax than they were under the coalition government,” he told reporters in Hobart.
“We have … a responsibility to do the right thing. And that’s precisely what we have done here, making a difference for people,” the prime minister said.
“We will look at whatever comes in front of us … we have to go through the fine print on everything. We have to look very carefully at all of the numbers because what this is is a lifetime tax on aspiration.”