Labor's Stage 3 Tax Cuts give richest 1% as much as the bottom 65%
New independent research from the Parliamentary Budget Office shows that Labor’s Stage 3 Tax cuts will give Australia’s richest 1% as much as the bottom 65% of taxpayers in its first year.
Amid a cost of living crisis, the data confirms that the Stage 3 tax cuts will effectively dismantle Australia’s progressive taxation system, and overwhelmingly favour the nation’s richest people.
Women will get around 50c for every dollar a man receives, further increasing gender inequality, and a huge proportion of the $243.5bn will go to people in the top tax bracket.
Lines from Adam Bandt MP, Leader of the Australian Greens:
“Labor’s Stage 3 tax cuts for billionaires and the wealthy will turbocharge inequality and widen the gender pay gap.
“This week’s Jobs Summit must reconsider the Stage 3 tax cuts for the wealthy, or everyday workers will fall further behind.
“In their first year, these tax cuts will give the top 1% of income earners as much as the bottom 65% combined.
“Labor’s Stage 3 tax cuts cost a fortune, and the wealthiest 20% get close to 80% of the money.
“Labor’s Jobs Summit and the October Budget must deliver cost of living relief for everyday people now, axing the tax cuts for billionaires and funding dental into Medicare, free childcare and affordable housing instead.”
Other major takeaways from the PBO costing released today include:
- The cost of the tax cuts has blown out to $243.5 billion
- $188 billion or 77% of the benefit of these tax cuts will go to the wealthiest 20% of the population (and over the coming Budget estimates period, the inequality is even worse, with the top 20% getting 80% of the money)
- $160bn will go to men, with just $80bn to go to women