Tax cuts: older Australians will lose out in the long run

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While many workers around the nation will benefit from the passing of the Government’s $140 billion income tax package, older Australians will lose out in the long run, says the Australian Council of Social Services (ACOSS).

The short-term gains for working Australians will be minor, though well received. But, as ACOSS Chief Executive Cassandra Goldie warns, with the passing of these tax cuts occurring while the budget remains weak, people will lose access to essential services in the long term

“The tax cut package is gambling the future of our medical services, aged care services, disability services, and social security payments most of us rely upon at some stage in our lives,” said Dr Goldie.

“Essential services will lose funding because tax cuts have to be paid for. When that happens, every person in Australia loses. We will all have to pay for services that in Australia, have been universally available to us all.

“[The tax package] will carve out a gulf between the haves and have-nots in Australia”: Dr Cassandra Goldie 

Senior economist at The Australia Institute, Matt Grudnoff, agrees.

“The overwhelming majority of retirees pay no tax and therefore will receive no benefit from such an income tax cut,” Mr Grudnoff told YourLifeChoices.

“They may, however, be very concerned that a tax cut reduces the amount of money that governments can spend on health services and the Age Pension – things that retirees depend on.”

Dr Goldie is concerned that the Coalition is looking for political points at a time when the economy, and the country, can least afford it.

“It will be a low point in Australian politics, where our politicians will have demonstrated a lack of care, responsibility and planning for the future,” she said.

“The biggest winners in the tax cut package are high-income earners. Middle income earners get little beyond the first stage. Low income earners don’t figure at all.

“The package is a short-term gain only, with high income earners winning in the long term.

“Promising huge tax cuts six years in advance is foolhardy. Are we fortune tellers? No, and none of us know what will happen to the economy and the budget that far ahead.”

There have been rumblings from independent analysts, Labor and the Greens that the tax cuts will do little, if anything, to help our economy, with suggestions that the Government should look at cutting down on other concessions, such as negative gearing and capital gains tax discounts.

That way, working families could still benefit without sacrificing funding for essential services and risking a budget staying in the red for much longer.

“We got into trouble last time a full income tax package was passed in advance. The GFC meant our Budget was in the red for a very long time and our essential services suffered as a result,” said Dr Goldie.

“[The tax package] will carve out a gulf between the haves and have-nots in Australia, between the minority of people who benefit and the majority who lose benefits and essential services.”

Are you a fan of the Government’s tax package? What do you think could have been done instead? Do you worry that you will either have to pay more for, or miss out entirely on, essential services?

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Written by Leon Della Bosca

Leon Della Bosca is a voracious reader who loves words. You'll often find him spending time in galleries, writing, designing, painting, drawing, or photographing and documenting street art. He has a publishing and graphic design background and loves movies and music, but then, who doesn’t?

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300 Comments

Total Comments: 300
  1. 0
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    Dr Goldie makes some valid points but why can’t Australia do both – that is have tax cuts and look at ways to improve essential services. I could not care less what the Australian Institute says as it is full of ex greens who would have us back in caves if there policies were ever implemented.
    My bigger concern at the moment is the cost of energy and soon to have imposts on agriculture and transport. The NEG will not save us money – our energy policies today are based on 3 tenets – emissions targets, reliability and cost – unfortunately cost comes third so we all pay more than we need to and businesses are less competitive – why would say an aluminium smelter remain in Australia when its energy costs are half in USA now – friends of mine in USA are paying 58% less than me for gas and electricity.

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      So you think we can eat our cake and have it too? Not sure how that could be accomplished, bob. Lots of pensioners would love to know the secret, I’m sure.

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      Easy just use less electricity and gas and it wont cost as much.

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      Labor has a 50% renewables target. God help us.

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      Renewables are the problem why our electricity costs are so high. Did you know the carbon footprint of construction a wind turbine will never be recovered by the life time of that wind turbine. Solar panels are not much better.

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      Privatisation of the network is the root cause of high costs. always was, always will be.

      Like any other business, renewables will cost more in the start-up phase, but then should begin to even out. The main concern is who has control over its implementation and operation, and whether or not they are the kind of sensible business managers who work out a profit line over the long term, or are just the usual smash and grab merchants we suffer these days – all intent on getting rich in one day.

      One reason the old public system worked well was because of the lack of need for appointed public servants to strike it rich, thus permitting them to look at the long term rather than the short term grab.

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      Trebor how do you explain why my power bills have been decreasing even since electricity was privatised? Only explanation I can give is renewables.

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      The short answer to your question Bob is ‘Budget Repair’. You know. That issue that was the end of the world when Hockey and Abbott has this issue run nightly on the news when Labor was in.

      $210 billion in 2010. Now $510 billion under this government. Never a mention any more.

      How about we ALL forgo tax cuts and PAY DOWN THE $150 BILLION OFF THE NATIONAL TAB???? Come on trolls….. Why not?????? Thought so. Yeah, pink batts and school halls????

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      We could have tax cuts and increases to age pension and even age pension for everyone with no means test, if and that’s a big IF the governments would ensure that big mining companies paid a decent royalty on all the minerals, oil, coal, and gas they extract and that they, along with all other big businesses actually paid tax on their income. Australia should be thriving in the same way as the middle eastern countries who ensure they are paid for their oil reserves. Oh yes, they could also get rid of the many tax perks and perks the very rich have.

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      Make up your mind OG, in one comment above you say the reason your electricity prices are rising is because of renewables, and then in another comment you say, since privatisation, your energy bills have been decreasing because of renewables, you can’t have it both ways.

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      OG is probably smart enough to be offsetting rises in elscicity prices by investing in renewables himself. So yes he can have it both ways. I know people invested in oil companies fill their cars up with a smile on their face every time the price of fuel increases as they know they are making more from their oil investments than the extra they pay at the pump. 10 to 1 OG has invested in oil companies too.

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      Yes Mick, and who voted down the Abbott savings in the Senate? ALP, Greens and your precious independents. If the Government of the day is prevented from implementing savings programmes by those who were not elected by the people to govern, whichever party is in power, then do not blame the Government.

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    The big end of town pay very little or no tax so how does a tax reduction effect them.Low earners save roughly ten dollars and those on higher incomes save one hundred and thirty dollars per week how is that fair.So the gap gets bigger.

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      If that is the case then why concern yourself about it. Just be thankful for what you get and stop whinging about what others get.

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      Typically rude reply from OG who hasn’t got a clue how the other half live, no compassion or understanding of othe people’s lives, just ignore his comments floss.

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      I certainly know a whinger when I see them and yes I have no time for whingers.

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      HAHA Floss – you put your foot in it and OG called you out
      Because of the tax cuts I will most likely be paying more tax next year

    • 0
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      Agree Raphael I too will pay more tax too as I will make more money in a more buoyant economy.

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      Raise taxes on the higher paid and send the cleaners through business….. the only ones that will come up squeaky clean are the neighbourhood businesses that rely on their till intake, which is all recorded.

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      How can you even think of calling Floss a whinger, OG? Read some of your own back posts and see how many times you’ve whinged in them.

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      What a joke.

      People who pay no tax whinging that they won’t benefit from a tax cut.

      Incidentally for the whingers, the figures I saw recently showed that the top 10% of tax payers pay over 50 % of the total tax. At the other end, the bottom 50% of tax payers receive more in welfare handouts than they pay in tax, so no net tax.

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      That shows clearly that the wage/income slope is too steeply slanted, Hasbeen – give the peasants more, tax them more, and they’ll be off social security….

      Sounds good…

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      Floss – never mind the trolls earning their living on this website. These people are the trash of society. Let them run their class warfare agenda. Their bosses will be unemployed after the next election and I can but hope that Shorten brings in the Federal ICAC to go through the Liberal Party and jail any who are found to be acting in violation of the rules.

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      OG and Raphael you both need a new accountant if you think you will have to pay more tax.

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      Misty we will have to pay more tax simply because we will make a lot more money for which no accountant can fix or do we want to fix. If we pay a lot of tax we are making a lot of money.

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      You are full of contradictions OG, how many times on YLC’S TOPICS have you said you manage your money so you pay little tax, what has changed?, have the ATO caught up with you?.

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      Has been, the top 10% of earners DO NOT pay over 50% of total tax. That’s a privileged party lie! The majority of tax collected is indirect and most of that comes from lower wage earners. In any case, it’s irrelevant. The fact is that progressive tax is an essential in a healthy society, The top 10% of taxpayers SHOUILD pay more than 50% of tax. They earn more than 50% of the total income earned in the country.

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      OG is just full of crap, best thing to do is just ignore any comments made by him.

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      So true FLOSS….I have a very wealthy friend who told me many yrs ago & I quote “one is not truly wealthy ’til they pay no tax, apart from from a few small GST unclaimables.” Sick of hearing that OAPs pay no tax – they do, thx to ex-PM Howard, as does the income tax avoider above who now pays not a single cent of income tax – all deductable.

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    I think we are in for another round of right wing greed, while the left wing are still off with the fairies governing refugees, homosexuals and Aboriginals.

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      Well put Charlie. The ALP has come off the rails since Chiefley while the Right stays the same. This gender-bender nonsense gets to me.

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      Spot on charlie

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      Agreed – the sooner Labor divests itself of these vapid ‘issues’ such as women’s rights and gay rights and everyone’s rights but yours and mine – they might become a viable force in politics again.

      Until then they will remain just the only alternative to a bunch of pirates and rapists of the nation and its people.

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      Well put Charlie and TREBOR.
      These are the thoughts of the SILENT MAJORITY, who for too long have been ignored by all Gov’ts who only listen to the SCREAMING MINORITIES (the squeaky wheel gets the grease.) I also have been wanting to voice my opinion on the 1% ers (ILLEGAL IMMIGRANTS,ABOS AND HOMOS),who now have the ear of all the Pollies, purely for the votes and the benefits to both.I was brought up in the 50’s when Australia WAS a democracy,but now I am threatened with prison if I say what I believe (back in those days I was lucky to get 1/- a month pocket money for working on our farm,but my sister and I used to buy toys for the local 100% aboriginal kids).In that period we had massive immigration,but they went to work and lived amongst the general population.I am now proud to be called a rascist or homophobe.The Homos of today yell about their sex preferences and are pushing it down our throats (including vulnerable kids). I had a homosexual relative in the 70’s/80’S and the whole family and friends knew,but he was treated more as a celebrity.He was one of the first to die from AIDS. We have tens of thousands of Australians homeless and living in cars with their kids,while the ILLEGALS and Cadbury Abos are given priority to housing. I am amazed to see the massive houses ILLEGAL IMMIGRANTS have, when interviewed on TV. I don’t see any of them living on the streets.

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      Yes Charlie. Happening as you write. Australians who believe the lies will get what they deserve and you’d think after Abbott that would be the end for a corrupt government. Amazing what a bit of a media propaganda can do to the mentally challenged though.

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      I had hoped people would call you out on this Charlie but instead they seem to be agreeing with you. If you were one of these minorities you may feel less than the privileged person that you and others describe. Tolerance and empathy seem to be lacking in your comments. Aborigines, LGBTI people, refugees are human beings just like you are and deserve respect. You have lumped them all into one basket as well and they are as individual as everyone else in society. Many are successful just like the rest of the population. Some have qualifications and are found in every part of the structure of society, in parliament, in business, in schools and in hospitals.

  4. 0
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    I watched the process as it happened in the Senate. I thought I was watching a dictatoeship not a democracy in action. The debate was shut down. Apparently, it was even worse the day before as confusion allowed some to allow the second level to progress and be passed as discussion was curtailed and the voting forced earlier than needed. Pauline Hanson who boasts that she represents the battler sided with LNP as did Derryn Hinch and the usual ones like Bernadi.
    The poorest worker will get little help and their pay will also be affected on 1/7/18 with reduction of weekend loading. The worker at the lowest end of the pay scales was not the centre piece of this tax law. They are the ones who spend as well not the top end who will have more to save and invest.
    Listening to the actual experts the tax system needs an overhaul but this did not achieve that. The whole system needs to be addressed not just earnings.
    Petrol is too dear for a start. Reducing excise would make everything cheaper and stimulate the economy. Politicians may not be the ones to address all the interacting elements that are required to make Australia the lucky country it could be.

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      Lesser paid workers sustain the economy more than the fat cats. Ten families on $50k buy ten microwaves… one family on $500k or $1m or $2m buys one microwave…. and spends the rest on deadstock like investments that pay no tax or on offshore purchases and holidays etc.

      The actual comparative contribution to economic activity HERE is much larger from the lowest paid – which is why chopping away at their meagre incomes is courting economic disaster.

      Trickle up has been explained before by some here…. it is the reality.

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      I’ve long said the tax system need a total overhaul…. chop many strands and consolidate into a few simple ones and close the loop-holes.

    • 0
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      This government is a dictatorship in the forming. So many things happening point to that. God help the idiots who vote for it if their votes push it back into office.
      Having said that I recall what they did to Whitlam and it is not past this lot to use the army to get its way.

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      It always amazes me, Mick, when I hear ordinary, relatively lowly paid workers and pensioners say they think the coalition government is doing a good job. It seems crazy that they would vote for a party that obviously has no interest in them and favours the rich and big business.

  5. 0
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    The so called tax cuts is one gigantic con. The top end of town will pocket most of them and much money will head straight to the USA because most multinationals are US owned. BAD FOR AUSTRALIA.
    These so called tax cuts for average citizens are little more than a vote gathering exercise and people will not look at WHO is getting the lion’s share. Of course the usual trolls posting government propaganda on this website will talk it up but the reality is it will cost us all and retirees will get zip.
    We all deserve what we get so think carefully before you sell out your children. The tax cuts are not genuine…and neither is the current government. Luckily it will not be in office much longer.

    • 0
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      Geez Mick, your comments come as a genuine surprise – not! So you reckon Bill is on the money to oppose tax cuts, eh Mick? When are people like you going to wake up to the fact that it is YOUR money? Governments of whatever persuasion don’t have any money of their own – only what they take from you and me. My philosophy is that I would prefer how and where to spend MY money – not let some faceless bureaucrat/government lackey determine where and to whom my hard earned will be directed. You Mick, on the other hand, appear not to have the same self confidence and belief that you can do the same – and prefer others to make the decisions for you. One day you might harden up, princess!

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      I disagree MICK. This government has shown a real empathy with working battlers. These working families are struggling to pay the increasing costs, particularly the power bills. Labor wants to tax more and increase costs. Labor is destroying the working families’ aspirations.

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      You can’t have it both ways MICK, you have posted in the past that multinationals pay no tax. There is no reduction from zero is there?

    • 0
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      Here come the government trolls……
      I agree with giving tax cuts to those who drive our economy. Those who have to spend 100% to survive. Those who have been driven into poverty since the GFC. That does not include the top end of town.
      I read yesterday that wage increases during the past 7 years were 30% in the well to do suburbs and only 16% for the rest of the nation. That is a starter.
      You guys need to go and see your employers and tell him to get out of his offshore tax haven and bring his money back to Australia.

      OM – for the record please don’t play your normal psychology games with me. You are fully aware that multinational are defrauding our tax system and that more and more are avoiding it altogether. Of course some are not. Probably those who are not currently ripping money out of our country.
      I do not appreciate your deceit and it does not become you.

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      MICK, you wanna know where the highest median household income is. ACT. And we know who lives there, so lets not pretend.

    • 0
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      Adrianus – I nearly fell out of my chair there…. empathy from this lot? Savage industrial war, class war, attack son low incomes…. empathy there… like Dr Mengele….

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      Adriaus Public Servants live in the ACT. They all vote Labor, but you knew this didn’t you

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      Not psychological games MICK, just my usual search for truth, justice and the Australian way. Cheers.

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      A couple of days ago I read a report which said that the top end of society, the ones doing it so tough, have improved their pay by 30% since 2011 whilst average workers have improved theirs by only 16%.
      Please do not play the violin for the ‘much needed tax relief’ at the top. IT IS PURE UNABATED GREED at a time we have DEBT. Remember that word trolls…DEBT. Abbott and Hockey DEBT.
      For the record Labor left with $211 billion debt and this government has chalked it up to $551 billion.

      Please comment government trolls!

      OM – your usual is DEMANDING proof when you offer none and do not want to go and verify the comments or otherwise. Yeah right!

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      Adrianus, you are being duped. LNP does not side with the lowest paid workers. You are listening to the propaganda from our present government. They could have raised the threshold from $19,000 or addressed directly the pay of the lowest paid workers. They did not do that. People supporting our present government make me think of Trump’s rally yesterday wherein the more grotesque his statements were the more they cheered him on.
      The government is not being creative or listening to people who have the expertise to address tax overhaul. They simply award money to the top end even when they cannot afford to do so. It does not stimulate the economy like giving extra money to people who would spend it.
      As for the cost of electricity, the sun shines and makes power, how about we all tap into that and add the means to store it as well.
      Seems the LNP have masters they have to answer to and it is not the public.

  6. 0
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    Oh so clever! They’ve done it again. Legislate for tax cuts well in the future so that if Labor wins the election they can blame Labor for the deficit the LNP’s tax cuts created. Just like they did last time around!

    This disgusting mob has to go!

    Of course, MT has the answer to the battler’s dilemma. Just get a better job! I mean, we don’t need aged care workers, do we? Well, not if the LNP has its way, because anyone who can’t afford self-funded retirement and private care will die on the job! Maybe we are all supposed to become politicians? MT claims any problems the battler has are the fault of the battler for not getting a better job – but he doesn’t seem to have many answers as to how they do that when jobs are scarce. Nor can he tell us who does the low-paid jobs when all the battlers move up the ladder. All he seems capable of is blowing the budget with fat handouts to his rich mates and screaming that the national debt is somehow the fault of aged pensioners.

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      OGR the OAP is welfare and is only meant to provide the basics of life. If you want more then you have to save for it yourself. If you are not prepared to do so then it’s on your fault that your have a miserable old age no one else’

      If you want better tax cuts then simply get a better job. MT is exactly right on this.

      So you wish to get rid of them and have your franking credits not returned by the ATO? It doesn’t matter who is in power as I will just adjust my affairs to suit.

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      A typical, idiotic, childish and pathetic post OGR! Haven’t you got something better to do? I would tear your post apart statement by statement, but it would be a waste of my time – there is no hope for someone as fixated as you OGR.

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      Why does anyone even bother to read OG’S COMMENTS HE HAS NO REGARD FOR ANYONE OTHER THEN HIMSELF.

    • 0
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      And you should talk Big Al. Clearly you are here to do what trolls always seek to do: provide little real facts and talk BS whilst pushing the worst rich man’s government in living history. Disgraceful.

      OGR – I agree with your political assessment. Shorten will kill this Bill when he wins the election.
      The rest of your post also has merit although modelling comes with a fair bit of risk. I wouldn’t worry about low paid workers being there in the future. Under the current government we will turn into a state of the US and workers will end up getting food stamps and never own a home. The intention of this government is to turn workers into dirt poor slaves. It began with the Hospitality Workers, then retirees and if this lot were to get in again the cancer would be introduced into one profession after the other. At the same time the rich would be left alone and more and more money would be thrown at them. THAT IS THE GAME.
      Vote for anybody other than coalition!

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      Shorten wont win the next election so this bill is safe for another term.

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      In your dreams OG.

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      Mick, no problem about you labelling me a ‘Troll’ but I wish the #@** I knew what it means?? In the inimitable words of everyone’s favourite red head – please explain???

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      Big Al a troll is anyone who doesn’t agree with Mick and his warped ideology.

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      A troll is someone who interrupts and disrupts a discussion by using personal jibes and nonsense hostile arguments and a few other things.

      “Troll
      One who posts a deliberately provocative message to a newsgroup or message board with the intention of causing maximum disruption and argument.
      by Alien Entity September 22, 2002″

      https://www.urbandictionary.com/define.php?term=troll

      We would all better served leaving the personal jibes out… such jibes reflect more on the user than on the abused.

    • 0
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      Come on Big Al and a few others…. You are posting government propaganda. The posts NEVER address the real facts and mostly seek to trivialise the facts which put the current government in the limelight.
      I suppose one day this lot will manage to silence the ABC and perhaps individuals as well. Oh yes, it has already tried on both. The day it happens you can take on a new title: Herr Al. If the hat fits wear it!

    • 0
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      Well here we go agin. The armchair geniuses. ( Plural). If someone took into account all the comments that were tabled here- and they let each comment have equal weight- we would most likely end up with a total list of unsupported heresay- or rubbish. At our age ( if you are over 65 yrs) you should have made up your mind by now that pollies are the twits who like talking, could never get a job in the real world- and yet we try to analyze the recent tax projections from a base of respect and trustworthiness. Please. We are all wasting our time with such biased opinions.Better to take our dogs for a walk, and buy your worse enemy a beer. Problem- I have no enemies- just dags who bother arguing with me and themselves.

  7. 0
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    “We got into trouble last time a full income tax package was passed in advance. The GFC meant our Budget was in the red for a very long time and our essential services suffered as a result,” said Dr Goldie.

    The landscape looked much different when Labor/Greens/Unions got in, on the back of Kevin Rudd’s popularity. Australia was the worlds most economically sound economy. The government at the time wanted to increase taxes, but was sending cheques to everyone. Once Julia Gillard stabbed Rudd in the back our PM was offering advice to all other countries on how to run their economy, such was the exemplary position we found ourselves in. According to Wayne Swan we had a pipeline of investment and new taxes were levied on mining and carbon. Labor/Greens/Unions will tax anything they can, heck they wanted to tax cows for farting. They still do. We have 100 million livestock . Under the ALP environment policy that number needs to be reduced by 30%. My question is , how will they achieve this?

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      A sound economy from which some of the underpinnings had been removed by theft sale…. including the $130Bn that went to The Caymans to guarantee politician retirement funds…. and not one vote said NAY…

      Then there was the sale of all the revenue securing utilities…. leading to massive cost rises to the consumer and no responsibility on the part of government for malfeasance, even though the government remains the major shareholder.

      Grand Theft Canberra it’s called.

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      Oh – the reality of that privatisation – given that government is a ‘shareholder’ in something it never owned – was a de facto rise in taxes to the consumer to accompany GST on those utilities.

      Grand Theft Canberra indeed.

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      “Our budget was in the red for a very very long time”?

      Intentional misleading comment.

      Labor left with a debt around $209 billion.
      Coalition has run up debt to $511 billion.

      Please explain right wing troll?????

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      And much of the debt blamed on Labor was caused by the LNP legislating benefits for the wealthy just before leaving office. Labor was stuck with unaffordable commitments. Just like they will be if they win the next election – stuck with unaffordable tax cuts legislated by LNP and then blamed for the harm those cuts cause. The LNP and its supporters are great at the blame game.

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      Ha ah OGR the LNP is only just getting on to of the mess Labor left for them to sort out. They certainly have done an excellent job sorting it all out too.

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    I know this is a pensioner forum but lets face it – looking back I would have been grateful for any tax cut while I was working. When working an extra day I lost 48% of that day’s pay in income tax. The incentive was totally lost to do better.
    Even today to work and save for a better old age if do not get a better life style than a person on the full age pension is stupid. We should encourage our young people to get up and have a go, not hitting them on the head with extra taxes.

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      I agree some of the things we had to do get around that 48% tax rate were astonishing. It will be so good to have a flat rate for most of the workers instead. Thank goodness one will not have to worry about doing extra overtime at the end of the financial year and cutting deals with their employer instead.

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      I can remember the rate being 60% in the mid 1980’s. Its good to see the top marginal rate tracking closer to the company rate which takes away the incentive to incorporate.

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      32% seems like a dream from those tax rates of yester year.

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      Why? Anyone having that much taxable income was only paying 48% on the super-profit, not on the whole lot… I see no reason for any argument there….

      Of course they could all take a lower income and pay a single rate of tax… try to convince some fat cat public servant that taking a salary cut will equalise the same net income if a lower tax rate was implemented…. they would never forsake their snobbery by taking that and would scream to high heaven.

      I did figures on that once….

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      Yes – I remember that super-profit Gillard tax on resources…. look at the flak she took over that… it was going to destroy the economy ad investment etc…. look at the result now without it – a destitute economy and even more destitute government coffers.

      No valid reason for anyone who is benefiting mightily to not pay tax fully and be proud of it… they gain the benefits, they pay their way the same as everyone else.

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      That resource tax was in name only as it didn’t raise hardy any revenue. Same with the carbon tax.

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      Now you’ve got it, OG – that tax on super-profits never bit and never did one thing to the economy – either way.

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      No all it was was a way for Gillard to big note herself.

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      Jim – current tax rates are way lower than they used to be. I remember the top rate of 60 cents in the dollars. Still the rich cry ‘too much tax’.
      If you give people more tax relief they will live a higher lifestyle. A lot of fun but you build an EXPECTATION of a lifestyle and they will never realise money does not grow on trees.

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      Our society was healthier and people – INCLUDING THE WELL OFF – were much, much happier when tax rates were higher. Back then, most well off understood that progressive taxation was good for society. But then greed took over!

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      OGR I am the happiest and the wealthiest that I have even been with most of that wealth created after I retired. It is amazing what one can do when time is their own to do with what they wish.

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      I have used this example before to try to put things into perspective. The temporary extra tax paid by the high income people had little effect on their lifestyle illustrated by this example. A young CEO on a very high income paid an extra $6000 per year at that time and it was stated by him that that was the family’s annual holiday amount. However, that same year the family went to Paris, which demonstrates the extra tax paid did not hurt the family but by paying it the economy would have benefited.

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      Not our economy if they went to Paris though Kathleen, only the French would benifit then.

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      MICK money is created into existence so we don’t need trees for it to grow on just debt.

      Tax cuts is one way of trying for a bit of inflation to dissolve the debt problem away. It is often used by Governments to ease debt burdens.

      The LNP believe the top create the jobs and businesses etc and they are right there.

      Extra cashflow will make opportunities for people to do something to make some money and create economic improvements.

      There should be no effect on service provision.

      We just need to make sure the CPI measures inflation accurately because it isn’t a great measure at the moment. The ABS needs a real shaking up. How a Government functions with such carelessly constructed data is a miracle in itself.

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      Misty, our holiday is visiting the grandkids in Canberra then driving back along the coast to home. Paris would be wonderful but France is not so safe now anyway. I believe in spending our holiday money in Australia especially the little towns that benefit so much by a few visitors. You can do both if you have the money for sure.
      People on high incomes have choices and maybe do both but the tax benefits should go to the lowest paid people. MC on Insiders today used the example of a worker on $30000 to compare tax and how the person on $200000 paid so much tax and the lowest paid worker was able to pay so little. Defies belief that anyone cannot see how callous that is. I think we need to have a walk in someone else’s shoes day in Australia where the CEO type person does elderly care or cleaning to try to gain some understanding and empathy and be paid and live like even for a day.

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    Keep calm, sit back and wait. Give them enough rope and this greedy, cynical, elitist government will hang itself at the next federal election.

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      We can hope, assuming the populace is smarter than they are in the USA.

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      Good call but I suspect they are the same. If this government gets back in then it’s game over for all except the wealthy and the party hanger oners….including the paid trolls on this website..

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      I suspect the Shorten will be the one to hang himself on this issue alone. The government will get votes form low income workers and also from higher income workers due to Shorten’s short sightedness.

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      Dream on OG get votes for $5.00 a week, I don’t think so, shows how out og touch you and the govt are on this issue.

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      Well Mick, Seenitall and all you other leftie whackos…here is a challenge! Come back onto this site after 28th July (Super Saturday), and after the voters in five seats have had their say. Lets see what they think – 5 Lower House seats out of 150 is 3% if my maths is still up to it – so statistically very relevant. I don’t think you whackos will have a lot to smile about following Super Saturday – and the voters in those seats will have cast their judgment based on this taxation bill, to a large degree. I expect Short-on ideas, integrity, and honesty to be in a fair bit of political trouble by ….oh about 29th July!

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      Big Al it was a good move to have those bi-elections after the tax cuts come in as well. I’d like to see Labor lose a couple of those seats.

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      The only wackos on this website are you Big Al and your offer fellow workers.
      Of course the lemmings will vote to cut their own throats. Throw them a couple of hundren dollars extra a year and many may vote coalition. After that the knife comes out and the real slaughter begins. A well worn path by your employer.

      Good post Seeitall. You are on the money. The above trolls are simply employed to post here so do not mind their vile spew. They will get their just desserts in the next life.

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      Big Al and you think M Turnbulls-it is going to fare better?, well lets wait and see.

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      Big Al, it depends on the voter and who they align with. A cleaner might think a banker is out of touch and callous whereas a wealthy person will be thinking 7 years ahead and rubbing their hands together.
      However, no one can predict seven years ahead into the future. LNP are electioneering and this is a promise no one may be able to keep.
      It is a play for votes. Both sides are electioneering now.
      Company taxes are up for discussion and voting on this week so that will play into it too. Many companies pay no tax. They do not even pay GST, that is refunded to them. Some are well known and we all pay them money.
      People think about their back pocket and whether they will get more money or be worse off.

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    This is just an obvious trick by a desperate government such as Howard’s last throw of the dice with those negative gearing and capital gains tax reductions. And look where that got us, Howard, personally, got kicked right out and so did his government and those laws destroyed housing for families when houses went from being family homes and became very lucrative, heavily government subsidized, investment commodities.
    And Turnbull talked, screamed, about aspirations, when he is doing absolutely nothing to rectify that blatantly obvious disaster which destroyed the aspirations of first home buyers.
    We know where his “aspirations” are.
    I couldn’t believe what I heard from a member of the Senate cross benches when he said that they had knocked back the third stage of the proposed tax cuts the day before and sent it back to the House of Reps because it was IMPRUDENT, but, would support it if it came back to the Senate because Labor would rescind it when they got elected???
    Are they for real?
    And Hanson did a double back flip and continued to show her ignorance. And WE are paying her big dollars!!!

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      Hanson always does a double back-flip and ends up voting with the big end of town – out of which she seems to have done remarkably well so far.

      I have zero faith in her, because she constantly talks the talk without the walk.

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      It is grateful. They think throwing the hard up a few very small bucks and talking it up in their media will get them back into office to rape the nation for a further term. It won’t and Labor will rightly repeal the tax cuts for the wealthy whilst not touching those for average Australians. A sound policy.

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      Grateful…”Turnbutt’ has stooped so low in desparation re politicising his “gift” to us all, benevolence (copying Trump) stating that will donate his $500,000 tax-payer funded salary to charity. Farcical…true Philanthropists don’t publicise their donations. Our PM must have needed yet another income tax deduction/avoidance & thought we were all stupid enough to recognise his desparate ploy. I’ve been a swinging voter for decades – won’t be swinging to LNP, disgusted @ their ignorance towards approx 20% of our population struggling on OAPs + approx 30% of battlers on low incomes (especially families who can’t afford to pay childcare fees) which won’t be “fixed” by their meagre publicised tax deductions schewed towards the wealthy.

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