This is the estimates of the recent stage three tax cuts passed in Canberra shown to media by Macarthur MP Mike Freelander who described Labor’s changes as “designed to provide relief to high cost of living” experienced by residents in his electorate.
Dr Freelander said single pensioners also receive a bigger boost with about $272.40 tax cuts which is “fairer” when compared to the Opposition's tax cuts.
The Labor tax cuts replaced the Coalition’s tax legislation passed in 2019 that set the tax threshold for those earning from $45,000 to $200,000 at 30 percent.
The recently passed tax breaks for low-income earners come under the changes to the Medicare levy, with the Albanese Government proposing to increase the thresholds by 7.1 percent to be in line with inflation, Dr Freelander said.
The tax cut changes also mean those households earning from $45,000 and below gets to keep around $804 more of their income.
“Every taxpayer in Macarthur will now get a tax cut. We’re delivering more help for working families and more help for Australians already under the pump from the cost of living, putting cash back into people’s pockets when they need it most,” Dr Freelander said.
In the region, Dr Freelander said there are 90,000 wage earners, and 89 percent of them or around 80,000 residents will receive a bigger tax cut under the changes to stage 3 tax cuts.
The treasury department said the stage three tax cuts are set to benefit 13.6 million of taxpayers with reduced tax rates ranging from current 19 percent tax rate to 16 percent for those earning below $45,000; 32.5 percent tax rate cut to 30 percent on earnings above $45,000; 37 percent threshold applies to those earning $135,000 and 45 percent threshold applies to those earning $190,000 and above.
Shadow treasurer Angus Taylor, the Liberal MP for Hume, a neighbouring electorate in the Macarthur, has accused the Albanese Labor government of breaking their promise not to change the tax cut legislation both parties passed in 2019.
“It is a tax increase Australians never voted for, now with this broken promise, many Australians will be hit with a double whammy… no one has ever solved an inflation crisis using class warfare,” Mr Taylor said in a statement last month.
To make your own computation of the tax breaks based on your actual annual income, residents are urged to use the calculator on the Department of Treasury website, by visiting www.treasury.gov.au/tax-cuts/calculator
