Stop the unfair tax handouts
It will actually be disastrous. $255 billion worth of tax handouts for the top 3.6% of income earners in our society.1
It made no sense when it was first proposed by the Morrison Government in 2019, and it makes even less sense now in the face of a cost-of-living crisis where low-income earners will be hit hardest.
But the tide is turning. The Greens, crossbench senators, and even Liberal MPs have come out calling for the cuts to be axed.2, 3, 4 With the Greens and crossbench on board, Labor already has the numbers in the Senate to overturn the cuts.
The Albanese Government have the power to stop these disastrous cuts – they just need the political will.
Sign the petition to tell Prime Minister Albanese these are tax handouts we can't afford.
The stage three tax cuts are part of a multi-year tax plan legislated by the Coalition Government in 2019.
While earlier stages of the plan benefited lower-income earners, 'stage 3' will overwhelmingly benefit the wealthiest earners – making our tax system far less progressive.
The changes will abolish the 37% tax bracket, lower the 32.5% bracket to 30% and raise the top threshold from $180k to $200k.5 Meaning those earning more than $200k will be the biggest beneficiaries, while those earning less than $45k will receive nothing.6
Not only will they fuel our growing wealth inequality crisis, but at a cost of $255 billion, it will be a devastating blow to our economy.7
While earlier stages of the plan benefited lower-income earners, 'stage 3' will overwhelmingly benefit the wealthiest earners – making our tax system far less progressive.
The changes will abolish the 37% tax bracket, lower the 32.5% bracket to 30% and raise the top threshold from $180k to $200k.5 Meaning those earning more than $200k will be the biggest beneficiaries, while those earning less than $45k will receive nothing.6
Not only will they fuel our growing wealth inequality crisis, but at a cost of $255 billion, it will be a devastating blow to our economy.7
- They will overwhelmingly benefit the wealthiest in our society with those earning more than $200k the biggest beneficiaries, and those earning less than $45k receiving nothing.8 This will only exacerbate our growing wealth inequality crisis.
- They undermine one of the core purposes of our current tax system, which is to ensure a fair and equitable distribution of wealth.
- They will be a devastating blow to our economy, diverting $255 billion in funds away from vital community services like health and education.9
- They will widen the gender pay gap between men and women, with $160.6 billion in cuts flowing to men compared to $82.9 billion to women.10
Despite having the numbers in the Senate to abolish these disastrous cuts, Prime Minister Albanese has so far remained committed to the cuts saying:
But the situation today is drastically different than it was in 2019. We've since been through a global health crisis where hundreds of people lost work and were forced to rely on income support to get by. With everything from petrol to energy to grocery prices going up, people are feeling the pressure of the rising cost-of-living.
And now the stage three tax cuts are on the agenda at Labor's cost of living caucus meeting this week, with government MPs talking out about the need to rethink these unfair tax handouts.12
We need to show the Albanese Government that everyday people want them to scrap these unfair tax cuts.
"Parliament made a decision to legislate those tax cuts, and we made a decision that we would stand by that legislation rather than relitigate it, and we haven't changed our opinion."11Labor appears committed to the cuts for the sole reason that they once said they would be.
But the situation today is drastically different than it was in 2019. We've since been through a global health crisis where hundreds of people lost work and were forced to rely on income support to get by. With everything from petrol to energy to grocery prices going up, people are feeling the pressure of the rising cost-of-living.
And now the stage three tax cuts are on the agenda at Labor's cost of living caucus meeting this week, with government MPs talking out about the need to rethink these unfair tax handouts.12
We need to show the Albanese Government that everyday people want them to scrap these unfair tax cuts.
[1] New data shows how the Stage 3 tax cuts massively favour the wealthy, The Australia Institute, 31 August 2022.
[2] & [3] Stage-three tax cuts: richest 1% of Australians will save as much as poorest 65% combined, analysis shows, The Guardian, 30 August 2022.
[4] Time to 'bite the bullet' and axe stage three tax cuts, veteran Liberal MP says, Sydney Morning Herald, 29 August 2022.
[5] & [6] New data shows how the Stage 3 tax cuts massively favour the wealthy, The Australia Institute, 31 August 2022.
[7] Scrapping the stage three tax cuts would save $243bn, The Guardian, 26 August 2022.
[8] New data shows how the Stage 3 tax cuts massively favour the wealthy, The Australia Institute, 31 August 2022.
[9] Scrapping the stage three tax cuts would save $243bn, The Guardian, 26 August 2022.
[10] 'Unfair': Tax cuts for highest income earners to give men double the amount as women, Sydney Morning Herald, 22 August 2022.
[11] Anthony Albanese says he will 'stand by' stage three tax cuts as Liberal MP joins calls to scrap them, The Guardian, 29 August 2022.
[2] & [3] Stage-three tax cuts: richest 1% of Australians will save as much as poorest 65% combined, analysis shows, The Guardian, 30 August 2022.
[4] Time to 'bite the bullet' and axe stage three tax cuts, veteran Liberal MP says, Sydney Morning Herald, 29 August 2022.
[5] & [6] New data shows how the Stage 3 tax cuts massively favour the wealthy, The Australia Institute, 31 August 2022.
[7] Scrapping the stage three tax cuts would save $243bn, The Guardian, 26 August 2022.
[8] New data shows how the Stage 3 tax cuts massively favour the wealthy, The Australia Institute, 31 August 2022.
[9] Scrapping the stage three tax cuts would save $243bn, The Guardian, 26 August 2022.
[10] 'Unfair': Tax cuts for highest income earners to give men double the amount as women, Sydney Morning Herald, 22 August 2022.
[11] Anthony Albanese says he will 'stand by' stage three tax cuts as Liberal MP joins calls to scrap them, The Guardian, 29 August 2022.
ADD YOUR VOICE
Dear Prime Minister Albanese and Treasurer Chalmers,
The introduction of the stage three tax cuts will be disastrous for both our economy and community. They will disproportionately benefit the wealthy, undermining our progressive tax system. You have the power to stop this – please use it.
24,272 signatures
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