https://www.theguardian.com/australia-news/2024/jan/23/labor-poised-to-alter-stage-three-tax-cuts-for-cost-of-living-relief-as-bitter-stoush-with-coaltion-looms
The Australian Financial Review reported the changes would see the 37% tax rate maintained, which is now slated to be abolished under the legislated plan, but that it would be applied from a higher income level than current tax rates.
This would mean some higher income earners would receive a smaller tax cut than legislated.
The AFR also reported the plan would include increasing the Low-Income Tax Offset for those earning up to $50,000. The Sydney Morning Herald was reporting Albanese had secured cabinet agreement to offer bigger tax cuts to workers who earn up to about $150,000 a year.
A spokesperson for the prime minister would not confirm or deny these claims.Meanwhile, business groups issued a last-ditch warning ahead of the meeting that modifying the stage three tax cuts – which flatten the tax brackets for those earning between $45,000 to $200,000 – would “undeniably dent the government’s credibility and damage the prospect” of future tax reform.
But government sources indicated Labor could deflect accusations of a broken promise by guaranteeing the full value of the tax cuts but with a fairer distribution, offering “substantial” cost of living relief, particularly to middle-income earners.
The government had rejected a report that it will lift the tax-free threshold while retaining the highest tax bracket at $180,000 instead of lifting it to $200,000 but has not ruled out other changes.“I support tax cuts and everyone will be getting a tax cut,” Albanese said on Tuesday.'
