Save
How you will, or won’t, benefit from Scott Morrison’s tax sweeteners
Fresh analysis shows who the major benefactors will be from the staged tax cuts passed by the Liberal government.
How you will, or won’t, benefit from Scott Morrison’s tax sweeteners
Fresh analysis shows who the major benefactors will be from the staged tax cuts passed by the Liberal government.
The Liberal Party has put forward its tax roadmap, and it includes a reduction in the middle tax bracket from 32.5 per cent to 30 per cent in the 2024-25 financial year.
The 37 per cent tax bracket will be removed, meaning 94 per cent of people will have a marginal tax rate of 30 per cent or less by 2025.
This is on top of tax cuts for low and middle-income earners of up to $1,080 for single earners or up to $2,160 for dual income families. These changes were slated for this financial year, but are currently facing delays.
What the analysts are saying
New research from The Australia Institute shows that 50 per cent of the benefit is going to the top 20 per cent of taxpayers, while the bottom half only gets 12 percent benefit and the bottom 20 per cent receive 0.2 per cent.
Executive director of the Australia Institute Ben Oquist believes that economically there is little benefit to cutting high income tax.
“This research shows that the overwhelming proportion of these new stage 3 tax cuts will flow to higher-income earners. There is little evidence to suggest such tax cuts are needed on economic or equity grounds,” said Mr Oquist.
“There is, however, some economic rationale for more immediate tax cuts for low and middle-income earners that could stimulate the economy at a time of sluggish economic growth,” said Mr Oquist.
The Australia Institute goes further to say that the new tax system will help Australians in the way it has been promised.
“The progressive nature of Australia’s income tax system has been a cornerstone of the Australian tax system for decades. These tax cuts weaken that progressive architecture,” said Mr Oquist.
RELATED ARTICLES
About the author
About the author
Tax saving
Navigating tax laws for capital gains in 2023
The landscape of Australian tax laws surrounding capital gains is ever-changing, with 2023 being no exception. Read more
Tax saving
What you need to know about the tax implications of crypto
One million Aussies are now invested in crypto, but many have not thought about how these investments will affect them at tax time. Read more
Tax saving
Welfare overhaul could give recipients a leg-up
Australia’s Centrelink recipients who’ve been doing it tough are in for a potentially easier time if the federal government pursues ambitious reforms that could provide sturdier safety nets. Read more
Tax saving
Students should think twice before tapping into their super
Former students might want to think carefully before they look to take advantage of the federal government’s biggest first home buyer incentive. Read more
Tax saving
Advocates call for an end to tax cuts
Social services sector advocates have warned that further tax cuts may make solving Australia’s biggest challenges much harder. Read more
Tax saving
ATO and AUSTRAC may gain new phone-tapping powers
A proposed update to electronic surveillance legislation could see the ATO armed with new powers that would allow the agency to bug phones and intercept online communications. Read more
Tax saving
Over 2m Aussies asked the TPB for help during the last year
As the economy recovers, Australia’s tax regulator says it’s planning to put unregistered practitioners under the microscope. Read more
Tax saving
Will you pay higher taxes due to bracket creep?
Bracket creep will see Australians paying more tax on average, unless further cuts are introduced in the future. Read more
Tax saving
Navigating tax laws for capital gains in 2023
The landscape of Australian tax laws surrounding capital gains is ever-changing, with 2023 being no exception. Read more
Tax saving
What you need to know about the tax implications of crypto
One million Aussies are now invested in crypto, but many have not thought about how these investments will affect them at tax time. Read more
Tax saving
Welfare overhaul could give recipients a leg-up
Australia’s Centrelink recipients who’ve been doing it tough are in for a potentially easier time if the federal government pursues ambitious reforms that could provide sturdier safety nets. Read more
Tax saving
Students should think twice before tapping into their super
Former students might want to think carefully before they look to take advantage of the federal government’s biggest first home buyer incentive. Read more
Tax saving
Advocates call for an end to tax cuts
Social services sector advocates have warned that further tax cuts may make solving Australia’s biggest challenges much harder. Read more
Tax saving
ATO and AUSTRAC may gain new phone-tapping powers
A proposed update to electronic surveillance legislation could see the ATO armed with new powers that would allow the agency to bug phones and intercept online communications. Read more
Tax saving
Over 2m Aussies asked the TPB for help during the last year
As the economy recovers, Australia’s tax regulator says it’s planning to put unregistered practitioners under the microscope. Read more
Tax saving
Will you pay higher taxes due to bracket creep?
Bracket creep will see Australians paying more tax on average, unless further cuts are introduced in the future. Read more
