New research that the Stage 3 tax cuts will do very little to help low and middle-income earners, but provide a huge windfall to high-income earners, highlights the deep unfairness of the Federal Government’s policy. According to the Australia Institute, the Tasmanian electorates of Lyons, Braddon, Bass and Franklin will be among the biggest losers of the Stage 3 cuts, while inner-city electorates will be the biggest winners.
While the first two tranches of tax cuts benefited low and medium-income earners, these were warranted. The Stage 3 cuts, however, will only further increase the inequality in our country, both between lower and higher income earners as well as between Tasmania and the mainland.
It’s also fiscally irresponsible that the Federal Government is willing to spend more than a quarter of a trillion dollars on this policy that only benefits high-income earners when many Australians are confronting a cost of living crisis.
This is only set to rise because of the underinvestment in public services caused by tax cuts. What the Government should be doing instead is investing this money into essential services like health, education, aged care, housing, and boosting pensions and payments. These are things that would make a real difference to people’s lives.