The new findings,commissioned by the Greens,show that workers on more than $180,000 a year are set to gain $9.1 billion from the package,which is set in law and cannot be changed without a fiery debate in parliament before July 1.
Another $3.2 billion goes to workers who earn between $120,000 and $150,000 a year,while $2.9 billion goes to those who earn $150,000 to $180,000 a year.
Albanese made no comment on the stage 3 tax cuts in an interview on Monday morning and said he was yet to receive final advice from Treasury on options to help with the cost of living,but he emphasised help for people on low and middle incomes.
“We’ve always said that we will continue to look for ways to assist people,” he told Sky News.
“If we can find ways to put extra dollars in people’s pockets,particularly those low and middle-income earners who are doing it tough,then we’re prepared to do so.”
While radio station 2GB reported on Monday afternoon that the government would raise the tax-free threshold above $18,200 a year and keep the top marginal tax threshold at $180,000 a year,two Labor sources with knowledge of the issue said this was wrong.
Shadow treasurer Angus Taylor seized on the report,however,to claim that Albanese was set to break his election promise to keep the tax package in place.
“This is the mother of all broken promises,” he said.
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Albanese said last Wednesday he was committed to the tax cuts going ahead in July and had not changed his position since he promised to support the full package at the last election.
Legislated by the Coalition and backed by Labor five years ago,the changes remove the 37 per cent marginal tax rate for those earning over $120,000 and reduce the 32.5 per cent tax rate to 30 per cent for people earning between $45,000 and $200,000.
TheTax Institute estimates that someone earning $120,000 a year gains an annual tax cut worth $1875 and someone earning $180,000 gains a benefit of $6075.
The annual benefit is worth $9075 for those on $200,000 a year and remains the same for all earnings above that threshold because the stage three package retains the 45 per cent income tax rate above that level.
Setting the threshold at $180,000 would limit the benefits to $6075 to all those on and above that income.
Australians on average incomes have missed out on the lion’s share of federal Labor’s $23 billion in spending to deal with the cost of living,intensifying a national debate on new proposals to help households without fuelling inflation.
About $5 billion of the federal support will be spent this financial year and only a fraction will go to people who are not on income support or other Commonwealth assistance,according to a government list of the policy pledges made so far.
The details reveal the $23 billion includes policies that continue to 2027 or beyond when Labor caucus members want the government to offer immediate help for consumers who are grappling with rising prices and higher interest rates this year.
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