The Greens have urged the Treasurer to scrap the Stage 3 tax cuts, arguing that they will see two thirds of taxpayers on lower incomes pay more tax, give the rich an extra $9,000 a year, and worsen inflation.
The call comes as new modelling, updated since MYEFO by the Parliamentary Budget Office shows the Stage 3 Tax Cuts will put an additional $300 million into the economy in the first year, increasing the likelihood of further interest rate rises. This brings the first year total to $20.7 billion. In the first year, the Stage 3 tax cuts direct 77% of the tax cuts to the wealthiest 20% of society.
The PBO costing shows that the cost of the Stage 3 Tax Cuts has blown out to $324 billion across the next decade, an additional $10 billion that would be better spent directly on providing cost of living support to people who need it.
Lines attributable to Senator Mehreen Faruqi, Acting Leader of the Australian Greens:
“Labor’s tax cuts for the rich are getting bigger by the day, and will turbocharge inequality and inflation - doing nothing for the people who need it the most,” Senator Faruqi said.
“People earning between $50,000 and $100,000 will be the worst off under these tax cuts for the rich. They will see very little from Stage 3, and will see their mortgages go up when the tax cuts make inflation harder to control.
“When their caucus meets tomorrow, Labor must listen to the Greens and axe the Stage 3 tax cuts.”
Lines attributable to Senator Nick McKim, Greens Economic Justice spokesperson:
“With bracket creep factored in, Labor’s Stage 3 tax cuts will see two thirds of taxpayers paying more tax than they currently are.” Senator McKim said.
“Workers earning between $50,000 and $100,000 will be the worst off. Meanwhile, the super rich end up getting a $9000 a year tax cut.
“Jim Chalmers hasn’t even asked the Treasury to model their inflationary impacts of the Stage 3 tax cuts, even though they’re getting more expensive by the day. Mortgage holders and renters will be the ones paying the most for these tax cuts for the rich.
“Labor must scrap these unfair, inflationary tax cuts for the top end when caucus meets tomorrow.”