This article’s a week old. The relief has been announced in tax bracket adjustments that roll back the Stage 3 cuts that were essentially going to remove the third bracket (primarily benefiting those earning >$135,000)
What are the new stage 3 tax cut brackets?
Here’s how the proposed plan looks at a glance:
Earn up to $18,200 – pay no tax
Pay a 16 per cent tax rate on each dollar earned between $18,201-$45,000
Pay a 30 per cent tax rate on each dollar earned between $45,001-$135,000
Pay a 37 per cent tax rate on each dollar earned between $135,001 — $190,000
Pay a 45 per cent tax rate on each dollar earned above $190,000
What were they going to be?
Here’s what the previous plan looked like at a glance:
Earn up to $18,200 – pay no tax
Pay a 19 per cent tax rate on each dollar earned between $18,201-$45,000
Pay a 30 per cent tax rate on each dollar earned between $45,001-$200,000
Pay a 45 per cent tax rate on each dollar earned above $200,000
If only he’d started this 2 years ago. Probably would’ve helped the Voice referendum pass as well.
Oh well I have no faith in Labor anyway, it’ll probably be some lame once off cash payment that helps nobody long term, rather than something meaningful like looking into why wages aren’t growing to match inflation.
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Big sums of one-off money are a great spectacle, but they have negative short-term impacts (likely to cause another spike to inflation) and negligible long-term benefits as once the funds are spent it’s just a return to the status-quo.
A more aggressive tax-cut for the lowest band, as well as a boost to services offered to those same people (rent assistance, dietary stipends to promote healthier foods etc.) funded by the top-end of town are the best long-term solution- but they don’t cause anywhere near the same level of media ‘splash’ as a “free” $1K would.
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What you call ‘market distortions’ are at times the only other means of getting additional money into the hands of low income earners.
If someone’s already paying $0 in income tax, either because they are on disability payments, a student, or caring after a loved one - then providing them with supplemental rental and nutritional payments are sometimes the only thing standing between them becoming unhoused and going hungry.
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Insanity:
Accommodating a no-living-wage legislative-regime, … and then demolishing tax-funds band-aid-ing the problem, with support for those who can’t get a living-wage.
FIX THE RIGHT PROBLEM, DAMMIT!
Politics never will.
Political-motivation prevents that from ever having roots.
Systemic, not political, change, is required.
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Honestly no idea what you’re even trying to say there mate, it was a lot of words but very little substance.
demolishing tax-funds band-aid-ing the problem
Are you referring to the Stage 3 tax cuts? Because they straight up need to go, they literally only benefit high income earners at the expense of everyone else.
