Earn
Low-income workers will receive nothing from stage 3 tax cuts: Australia Institute
Earn
Low-income workers will receive nothing from stage 3 tax cuts: Australia Institute
Bank CEOs and federal politicians are expected to be among the biggest beneficiaries in the next stage of tax cuts.
Low-income workers will receive nothing from stage 3 tax cuts: Australia Institute
Bank CEOs and federal politicians are expected to be among the biggest beneficiaries in the next stage of tax cuts.
High-income earners including major bank CEOs, federal politicians and surgeons are set to receive a tax cut of $9,075 per year under the federal government’s stage 3 tax cuts.
Meanwhile, low-income earners such as aged care workers, disability carers and those on the minimum wage will not benefit at all, according to analysis from the Australia Institute.
All workers earning between $45,000 and $200,000 will pay a 30 per cent marginal tax rate when the changes come into effect in 2024, and the 37 per cent bracket that currently applies to workers earning more than $120,000 will be removed.
As a result, workers earning more than $200,000 will receive the full benefits of the tax cuts.
“Our research reveals that under this plan it’s billionaires that benefit while battlers get slugged,” said Australia Institute chief economist Dr Richard Dennis.
“How is it reasonable that a bank CEO earning $5.2m a year will be given a $9,000 tax cut, while someone working in aged care or on the minimum wage receives nothing?”
Based on average salaries, the tax cuts will also deliver savings to financial dealers ($4,661), financial managers ($4,558), human resource managers ($3,808) and barristers ($3,330).
The Australia Institute also identified which occupations would be most impacted by the end of the $1,080 low and middle income tax offset (LMITO).
While the government has not yet confirmed whether or not it will extend the offset into the next financial year, 90 per cent of taxpayers are expected to pay more if it does get removed.
Workers that would face higher tax bills include secretaries ($832), cooks ($533), delivery drivers ($494) and aged and disability carers ($410).
Factoring in both the introduction of stage 3 tax cuts and the removal of the LMITO, the Australia Institute said that the average bank worker would pay $878 more tax during the 2024-25 financial year than they currently pay.
Teachers would also be among the losers, including those working in early childhood ($656), primary schools ($486), TAFE ($279) and secondary schools ($93), as well as registered nurses ($399).
“By cutting taxes for the higher-come earners, this extreme plan will make our tax system permanently less fair. It’s an attack on Australia’s fair-go, progressive tax system,” commented Dr Dennis.
“The stage 3 tax cuts also mainly go to men. Men get 67 per cent of the tax cuts while women get 33 per cent. This means that for every dollar of tax cut going to women, men get $2.”
Dr Dennis argued that the changes would lead to an increase in economic inequality in Australia.
“Low and middle income earners are more likely to spend their tax cut back into the economy, creating jobs and growth, while the highest income earners are more likely to stash the additional cash away,” he concluded.
Earn
Most voters believe JobSeeker rate should be lifted
Nearly half of Aussies said they would likely vote for a candidate who promised to lift the JobSeeker payment above the poverty line. ...Read more
Earn
Should Australia’s minimum wage be lifted?
With the cost of living being a central focus of this election campaign, both major parties are in disagreement over wage increases. ...Read more
Earn
New research claims over 300,000 Australian households have 'no financial safety net'
New research has been released. ...Read more
Earn
Are property investors pushing prices higher?
The average price for investment properties was found to be nearly $170,000 below the mean national property price. ...Read more
Earn
Almost a quarter of full-time workers are considering leaving their current job
Younger workers are the most likely to be thinking about quitting. ...Read more
Earn
Young people are leading the great resignation
Almost a third of Gen Z and Millennial workers are actively seeking a new role. ...Read more
Earn
Women earn up to 37% less than men in the gig economy
A report commissioned by the Victorian government has examined inequality in the on-demand economy. ...Read more
Earn
Why energy stocks are becoming more attractive
The latest market correction has provided an opportunity to benefit from high-risk segments like energy, an expert has said. ...Read more
Wrapping up an eventful 2021
Listen now
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
Earn
Most voters believe JobSeeker rate should be lifted
Nearly half of Aussies said they would likely vote for a candidate who promised to lift the JobSeeker payment above the poverty line. ...Read more
Earn
Should Australia’s minimum wage be lifted?
With the cost of living being a central focus of this election campaign, both major parties are in disagreement over wage increases. ...Read more
Earn
New research claims over 300,000 Australian households have 'no financial safety net'
New research has been released. ...Read more
Earn
Are property investors pushing prices higher?
The average price for investment properties was found to be nearly $170,000 below the mean national property price. ...Read more
Earn
Almost a quarter of full-time workers are considering leaving their current job
Younger workers are the most likely to be thinking about quitting. ...Read more
Earn
Young people are leading the great resignation
Almost a third of Gen Z and Millennial workers are actively seeking a new role. ...Read more
Earn
Women earn up to 37% less than men in the gig economy
A report commissioned by the Victorian government has examined inequality in the on-demand economy. ...Read more
Earn
Why energy stocks are becoming more attractive
The latest market correction has provided an opportunity to benefit from high-risk segments like energy, an expert has said. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
