The cost of Labor’s Stage 3 tax cuts, withheld from media on Budget night, amounts to a Budget black hole of $313 billion over the decade, according to Greens-commissioned analysis by the Parliamentary Budget Office. This is a massive 23% increase on previous estimates.
The Stage 3 tax cuts will continue to turbocharge inequality, disproportionately rewarding men at close to double what women receive, with 65% of the benefits flowing to men over the next decade.
$157 billion, just over half of the total cost of stage 3 tax cuts over the decade, will flow to people earning over $180,000 a year. In the latest year of data, only 3.6% of people earned over $180,000 a year. Previous analysis has shown that the top 1% of earners will receive more than the lowest 60% of income earners combined.
Lines attributable to Greens Leader Adam Bandt MP:
“Labor’s tax cuts for the rich are ripping money away from everyone else,” Mr Bandt said.
“Labor’s keeping renters in crisis and people in poverty while giving $313 billion in tax cuts to the wealthy.
“Instead of freezing rents or getting dental into Medicare, Labor’s giving tax cuts to politicians and billionaires.
“Labor’s Stage 3 tax cuts for the wealthy are a massive black hole, sucking in money that should be spent on services for everyone.
“Labor’s Stage 3 tax cuts are a $313 billion handout to the rich, dismantling our progressive tax system and driving Australia towards US-style inequality.
“Food bank queues are growing and people can’t pay the rent, but Labor’s giving billionaires like Clive Palmer a $9,000 a year tax cut.
“Labor’s $30b a year in handouts for the rich is more than 60 times their affordable housing spend. How can Labor spend over $30b a year on tax cuts for the wealthy, but not $5b a year for public housing as the Greens want?”
Lines attributable to Greens spokesperson for Economic Justice, Nick McKim:
“Labor’s stage 3 tax cuts are a body blow to Australia’s progressive income tax system,” Senator McKim said.
“It is unconscionable that a PM who got elected on a story of growing up in public housing would so cynically pull the ladder up behind him.
“The idea of giving $313 billion in tax cuts to the wealthy instead of freezing rents, lifting Centrelink above the poverty line and building public and affordable housing is beyond disgraceful.
“In Australia the fastest growing cohort of people experiencing homelessness is now children under 11. Homelessness is now a real threat to any person or family that experiences a bit of bad luck.
“Millions of people are stuck on poverty payments because the budget apparently can’t afford to allow people to both eat and pay rent, and report after report shows there’s not a single rental affordable to people on Jobseeker, while many workers are paying 60% of their income in rent.“