Tax cuts favour middle class, says Turnbull
THE Turnbull government has seized on new analysis showing middle-income earners will be the biggest winners from its income tax cuts, and has called on Labor to drop its opposition to the reforms.
Addressing the NSW Liberal Party State Council in Sydney yesterday, Prime Minister Malcolm Turnbull said most of the benefits of the $144 billion tax cuts would go to middle-income earners. “(The plan) is fair, it’s progressive, it maintains the progressive nature of the tax system, but above all, it reaches out to hardworking Australians, hardworking families on middle incomes,” Mr Turnbull said.
A breakdown of Treasury figures published in The Weekend Australian and Fairfax Media shows that after 2024, when the last stage of the plan kicks in and the 37 per cent tax bracket is done away with, relief will almost entirely go to those earning between $120,000 and $200,000.
Labor supports the first tranche providing $530 in annual tax relief for low and middle income earners, is still deliberating the proposed cuts in 2022, but has “grave reservations” about the changes in 2024.