PM delivers tax package

Workers on big incomes come out ahead

WORKERS will get hundreds of dollars back at tax time next year after Prime Minister Malcolm Turnbull’s full income tax cuts passed the Senate.

But people on big wages are the big winners — they will get thousands of dollars back every year once another round of cuts take effect in 2024.

“This is the most comprehensive reform of personal income tax in a generation,” Mr Turnbull said yesterday.

“It is fair. It rewards and encourages enterprise, it encourages and enables aspiration.”

Labor has pledged to repeal the final stage of the plan if it wins government at a federal election due by next May.

The $144 billion tax package passed the Senate with almost all of the crossbench supporting it, despite objections from Labor and the Greens.

There is wide support for cutting taxes on people earn- ing up to $90,000 a year, but Labor opposed the package’s third stage, which benefits people earning up to $200,000 from 2024.

Treasurer Scott Morrison told parliament step three simplified and flattened the tax system by abolishing the 37 per cent tax bracket, reducing the number of tax brackets from four to three.

Mr Morrison said Labor had sought, by opposing the third round of cuts, to increase the tax burden on Australians by $70 billion over the next 10 years.

Shadow treasurer Chris Bowen said the Government’s fiscal recklessness and addiction to unfairness was more stark than it had ever been.

“It celebrates when it locks in $144 billion of income tax cuts when they can give no certainty, no guarantees about whether they are affordable or sustainable,” Mr Bowen said.

One Nation Senator Pauline Hanson conceded it was a gamble to support the package, having argued the third and final stage was unaffordable but said she was now more optimistic.

In the Senate, Labor and the Greens voiced anger about the way in which the Government had shut down debate.

Labor’s Penny Wong said it was all about the Coalition’s “political timetable”, before five by-elections rather than sound policy or fairness.

Polls have shown a majority of voters disagree with the tax cut for the most wealthy

. Under the first of three stages, low and middle-income earners will get tax relief of up to $530 a year from July 1.

Independent Tim Storer was the only crossbencher to vote against the Bill.

Senator Storer issued an attack on the Centre Alliance party, of which he was once a member, for voting with the Government.