Prime Minister Anthony Albanese has given the strongest indication yet that the stage 3 tax cuts will be expanded to benefit lower-income earners.
Independent economist Chris Richardson suggested the threshold could increase from $18,200 to $19,500 using the money saved at the top, delivering an across-the-board tax cut of $247 a year.
Acting Greens leader Mehreen Faruqi on Monday wrote to Treasurer Jim Chalmers to repeat calls to ditch the cuts, highlighting new analysis by the independent Parliamentary Budget Office showing three-quarters of the benefit would go to the top fifth of income earners.
Angela Jackson, lead economist at Impact Economics, said the reported alternative would make the cuts “fairer and more equitable and importantly increase incentives to work at the lower end where the most gains are to be had”.
“From a labour force participation point of view, lowering the top marginal rate will have minimal impact because those workers are generally already working full time,” Dr Jackson said.
“However lifting the tax-free threshold lowers the marginal tax rates of low-income and part-time workers, increasing the rewards from an extra hour of work.”
The original article contains 703 words, the summary contains 184 words. Saved 74%. I’m a bot and I’m open source!
This is the best summary I could come up with:
Prime Minister Anthony Albanese has given the strongest indication yet that the stage 3 tax cuts will be expanded to benefit lower-income earners.
Independent economist Chris Richardson suggested the threshold could increase from $18,200 to $19,500 using the money saved at the top, delivering an across-the-board tax cut of $247 a year.
Acting Greens leader Mehreen Faruqi on Monday wrote to Treasurer Jim Chalmers to repeat calls to ditch the cuts, highlighting new analysis by the independent Parliamentary Budget Office showing three-quarters of the benefit would go to the top fifth of income earners.
Angela Jackson, lead economist at Impact Economics, said the reported alternative would make the cuts “fairer and more equitable and importantly increase incentives to work at the lower end where the most gains are to be had”.
“From a labour force participation point of view, lowering the top marginal rate will have minimal impact because those workers are generally already working full time,” Dr Jackson said.
“However lifting the tax-free threshold lowers the marginal tax rates of low-income and part-time workers, increasing the rewards from an extra hour of work.”
The original article contains 703 words, the summary contains 184 words. Saved 74%. I’m a bot and I’m open source!