The prospect of a significant tax cut for low- and middle-income earners is gaining traction, with Australia’s federal opposition now contemplating support for the government’s controversial stage 3 tax cut policy.
The revised plan aims to provide relief to every taxpayer amid the ongoing cost of living crisis. A person on the average annual wage of $73,000 will get a tax cut of more than $1500 a year under Labor’s revamped tax policy – more than double the cut they’d have received under the Coalition’s legislated stage 3 plan.
Despite initially condemning Prime Minister Anthony Albanese for what they deemed an election promise reversal, the opposition is now carefully considering the proposed changes.
Opposition Leader Peter Dutton acknowledged the ongoing review, telling reporters, “We’ll take a look at the figures as we are doing today and we’ll make an announcement in due course.”
This marks a significant shift from Dutton’s earlier strong criticism of Albanese, accusing him of lacking the “strength of character” to apologise for a perceived error in judgment.
Only days ago, Deputy Opposition Leader Sussan Ley had pledged to vigorously oppose the legislation in parliament, emphasising they were “not prepared to give up on this.”
In response, Albanese defended the change, maintaining its potential to assist residents grappling with high prices and encourage increased workforce participation.
He told Sky News, “I have said this is a change of position – but it’s a change of position not driven by politics but driven by looking after people.”
If the tax changes gain approval, they are slated to take effect in July.
