Public support for the federal government’s controversial stage three tax cuts, which benefit mostly high-income earners, is low, research has found.
The federal government seems determined to press ahead with the previous government’s contentious tax proposal, despite what appears to be widespread public disapproval.
A national survey of 1409 respondents conducted by thinktank The Australia Institute has found a majority of Australians (61 per cent) believe adapting economic policy to suit changing circumstances is more important than keeping an election promise.
The survey also found that 41 per cent of respondents support the government repealing the stage three tax cuts, while 22 per cent wanted them kept. Another 37 per cent were unsure.
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“The research shows most Australians agree that when economic circumstances change, economic policy should change too – even if that means breaking an election promise,” says Dr Richard Denniss, executive director of The Australia Institute.
“Australians are receptive to having a big, honest conversation about the economy – indeed this research shows that conversation is already happening.”
Under the stage three cuts, the $120,000-$180,000 bracket will be abolished completely (making a $45,000-$180,000 bracket) and the top tax bracket will be increased from $180,000 to $200,000.
The marginal tax rate faced by the $45,000-$180,000 bracket will be reduced to a flat 30 per cent – down from 32.5 per cent.
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The Parliamentary Budget Office (PBO) estimates the tax cuts will cost a cumulative $243.5 billion out to 2032-33. Of that amount, six per will go to the richest one per cent of income earners and 77 per cent will go to the richest 25 per cent of income earners.
Dr Denniss says: “Voters expect responsible management of the economy and the fact is that the economic conditions of 2022 and budget projections over the forward estimates are vastly different to when these tax cuts for high income earners were first announced by Scott Morrison in 2018.
“The message from voters is clear: this sort of reckless spending must stop.”
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But the government appears to be sticking to its guns on the issue. Federal Treasurer Dr Jim Chalmers told the ABC’s 7:30 program the planned cuts were here to stay.
Asked whether the government could consider changing cuts in some way – rather than keeping them exactly the same – Dr Chalmers again said the policy would not change.
“My position on the tax cuts hasn’t changed,” he said.
“Our policy is as it has been.” Do you support the proposed stage three tax cuts? Or will the cost to future generations be too great. Let us know in the comments section below.