The Prime Minister, Anthony Albanese, has defended the changes the government has made to the Stage 3 tax cuts.
In an address to the National Press Club, Albanese confirmed that the tax system will remain progressive with the reintroduction of the 37% tax scale. Whereas the Stage 3 cuts excluded people on lower incomes, all taxpayers will now receive a tax cut from July 1, but those on higher incomes have had their cut reduced.
Approximately one million people will receive a lower tax cut than originally legislated. The $200,000 threshold has been lowered to $190,000. A taxpayer who would have got a tax cut of $9,000 will now get around $4,500.
However, 11.5 million people will receive larger tax cuts. The original Stage 3 only applied to taxpayers earning more than $45,000, but will now apply to all taxpayers earning beyond the tax-free threshold of $18,200. The lowest tax scale of 19% will be reduced to 16%. Lower income taxpayers will also benefit from an increased threshold for payment of the Medicare levy.
Questioned at length by reporters about the the proposals being lies and a broken election promise, Albanese stressed that it was now a better policy and his obligation as prime minister was to adapt to changes and to look after the majority of Australians. His speech to the press club was titled “Middle Australia”.
Listen to Albanese at the National Press Club (75m):
The full transcripts of Albanese’s appearance at the National Press Club appear below.
Watch Albanese’s National Press Club appearance (75m):
Read Albanese’s speech to the National Press Club:
Read Albanese’s responses to questions: