Albanese backs Chalmers on income tax cut U-turn

7/10/2022 12:18:00 PM

The nation’s highest income earners stand to lose thousands of dollars a year in promised income tax cuts under changes being contemplated by Labor.

The nation’s highest income earners stand to lose thousands of dollars a year in promised income tax cuts under changes being contemplated by Labor.

The nation’s highest income earners stand to lose thousands of dollars a year in promised income tax cuts under changes being contemplated by Labor.

“My colleagues and I are approaching the upcoming budget responsibly and methodically,” he told the Western Sydney leadership dialogue.“As well as the growing costs of servicing a record national debt, when interest rates are rising.Dr Chalmers made the same points in a speech delivered in Brisbane Friday.

AdvertisementDr Chalmers said two new reasons had emerged overnight on Thursday for the government having to break the election promise – the“The backdrop for the budget that I hand down in less than three weeks’ time will be high inflation and rising interest rates, a deteriorating global economy, and persistent structural pressures on the budget which will not be compensated for by higher commodity prices,” he said.

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PartyReality Wait, in the UK, under an unpopular Tory govt, this exact same U Turn was uniformly described - by the financial papers - as a good thing. So it's a good thing, right? This Lab Lib Government is pitting Australians against each other rather than acting in our individual and sovereign interest. Refuses to take on sovereign wealth looters, population ponzi parasites, ore oligarchs and cartels…Just screws over Australians. When does it sink in?

Only in the dumbest of dumb colonies do the people accept more taxation whilst allowing themselves to be looted of their sovereign wealth in Minerals, Energy, Gas & Agriculture. Wake up Australians. Lab or Lib - they are corrupt puppets. Act not for us. AFR heavies to lose more than $10,000 each in expected tax cuts

Yeah right To pay for federal politicians pay rise .. I don't need a tax cut.. I need funded hospitals and schools, and no ambulance ramping if I have a medical emergency. They stand to gain a hospital bed when they need one, instead of dying in an ambulance outside waiting... Taxes pay for essential items. Cuts to taxes mean they are not there when you need them most.

everybody knows a socialist labor government is a lying two faced government lying is part of their DNA. Good move, budget circumstances change. These tax cuts are unaffordable & will see bigger deficits out further. Poor petals, I really feel sorry for them. Not!

Labor attacked by former RBA governor Bernie Fraser for sticking to ‘dodgy’ stage-three tax cutsFraser says Albanese government should repeal stage three as the tax cuts are ‘even more unfair’ due to falling real wages

Seriously Murdoch dribble 101! Cry me a river ... I’m in the tax bracket to lose the most if these are not implemented & happy to forgo it. Stop making us out to be selfish mugs Coorey trying to tell us that people in that tax bracket aren't already maxing out their deductions Or is Phil that stupid he's still paying full tote 😱🤣😂🤣

Bollocks. Fin Review losing the plot. Can’t lose what you don’t have. Fine. So long as it’s not pissed away. Alternatively: The nation's highest income earners will not gain thousands of dollars a year in promised income tax cuts under changes being contemplated by Labor. Editorial decisions are interesting, aren't they?

Thats your argument. 🤣 I think Alan Joyce, Gerry Harvey, Clive Palmer and the rest of the millionaire and billionaire club will get by just fine. AlboMP JEChalmers Politics_SMHAGE abcnews billshortenmp RichardMarlesMP auspol 7NewsAustralia 9NewsAUS andrewprobyn theage Liars. What dont you get: Trillion dollar debt, budget deficits, cost of living crisis, rampant inflation, rising interest rates, global uncertainty. Medicare, NDIS, Aged, Hospitals starved of funds from 9 years of LNP Govt. High income tax cuts would be economic vandalism smh auspoI

Scrap ‘dodgy’ tax cuts to fund Labor spending: former RBA bossLabor should do the honourable thing by scrapping the stage three tax cuts to pay for its ‘expensive’ spending says Bernie Fraser. GrogsGamut Yes. I can't beleive Labor politicians would have such a pathetic grab on their minds. I can’t think of a single worse thing to spend money on than “Labor Spending”. Dodgy is a good summary for the legislated tax cuts

I think they are losing a lot more in this equity market and property downward trend 😏 That’s said, did you expect Albany to keep his promise? Don’t trust any of them, left or right, all the same 👎 Terrible, terrible headline Cry me a river. Boo hoo. Plenty of Employees have been promised pay increases they never receive, so what’s so special about the top-end income earners who don’t need the tax cuts anyway.

Good How do they “lose” money they never had? Albo was a young socialist and never changed his views. Never grew up. They’re not losing the money from tax cuts they never got it. Good to see PhillipCoorey reporting style hasn’t changed with governments.

Labor ‘internally debating to break promise’ of being a ‘safe change’Sky News host Peta Credlin says a “good part of the reason” Labor won the federal election was because they were able to persuade voters that Labor leader Anthony Albanese was a “safe change”. “Now, Labor is having an internal debate about whether to break that promise,” she said. Ms Credlin said Labor was considering scrapping tax cuts for “people on the top marginal rate” – over $200,000 a year – but for those living in cities, this wage is “not rich”. “Thanks to bracket creep, the 45 per cent top tax rate, that originally applied to only about two per cent of taxpayers, will soon apply to the top five per cent,” she said. “Tax at that rate is a serious disincentive for people to make the effort and earn more.” Peta Incredulous 👇🏻 Credlin is a non entity who has no voice.

Sussan Ley says stage three cuts are ‘owed to the Australian people’Deputy Liberal Leader Sussan Ley says Stage 3 tax cuts are 'owed to the Australian people' amid speculation Labor could backflip on its election promise. 'These were tax cuts that were promised to the Australian people, they are owed to the Australian people and they are expected by the Australian people,' Ms Ley told Sky News Australia. 'They are legislated, they are in law - and already we're seeing Labor breaking another promise walking away. 'We've got different ministers on different days saying different things.' A reminder Sussan, along with the rest of the MP's & Senators will be $9k a year better off if these cuts went through. Sussan isn't wanting the cuts for the average wage earner.. just the top end of town. Here's to you Sussan 🖕🖕🖕 The mouth that opens before the brain thinks. Hatchet Suze getting ready.

Hard figures disprove idea stage three tax cuts are just for the richIt won’t be the harbourside mansion dwellers who will be hurt by a broken promise of this kind. It will be the train drivers, miners and tradies who make this country tick, writes AM Agenda Host Laura Jayes. ' Ttain Drivers' Yeah, way to go Laura And it starts.

Albanese on 'being economically literate'The Prime Minister said he was 'being economically literate' when quizzed about whether comments he made during a speech were laying the groundwork for changes to the stage three tax cuts. The Liberals refuse to see what's happening in the world around them, that's far more dangerous I think he meant illiterate? Meanwhile many opinionators in this neighbourhood seem to require assistance with their economic literacy.

reported on Monday the government was considering paring back the cuts, Mr Albanese made the very same arguments Dr Chalmers has been making all week.What are the stage-three tax cuts worth? The cuts are worth $243bn over 10 years.to save article Share The Albanese government should do the honourable thing by scrapping the “very dodgy” stage three tax cuts to pay for its “extremely expensive” planned spending, former boss of the Reserve Bank of Australia and Treasury Bernie Fraser says.Labor ‘internally debating to break promise’ of being a ‘safe change’ 4 minutes ago Sky News host Peta Credlin says a “good part of the reason” Labor won the federal election was because they were able to persuade voters that Labor leader Anthony Albanese was a “safe change”.

The prime minister said the October 25 budget would need to take into account the consequences of a rapidly deteriorating global economic outlook, rising inflation, and the rising cost pressures of defence, health, the National Disability Insurance Scheme, aged care and interest payments on debt. “My colleagues and I are approaching the upcoming budget responsibly and methodically,” he told the Western Sydney leadership dialogue.  The marginal tax rate for those earning between $45,000 and $200,000 will drop to 30%. “Taking full account of the increasingly uncertain global economic outlook, and recognising the long-term fiscal pressures of funding vital programs such as aged care, the NDIS, hospitals and defence and national security. In a speech to a revenue summit hosted by progressive think tank The Australia Institute at Parliament House in Canberra, Mr Fraser said Labor had a very ambitious and commendable spending program on areas such as aged care, childcare, the National Disability Insurance Scheme, as well as spending pressures in defence. Advertisement “As well as the growing costs of servicing a record national debt, when interest rates are rising.5% for those earning $45,000 to $120,000, and down from 37% for those earning $120,000 to $180,000. “We are prepared to make difficult decisions, to get Australia through hard times and to ensure our fiscal policy provides a sustainable path forward in the immediate circumstances, as well as the longer term.” Read More.

“Our budget will be responsible. Was this helpful? Thank you for your feedback.” Advertisement Labor took to the election $18 billion over four years of higher spending than the Coalition on areas such as childcare subsidies, clean energy, aged care, skills, health and education. It will be focused on strengthening Australia’s economic resilience, so we can protect and enhance people’s living standards.” Dr Chalmers made the same points in a speech delivered in Brisbane Friday. “And that means taking steps to repeal stage three and to get on with the real commitment of the government … which is building a fairer and healthier and happier country for all its citizens. Cost pressures not new The Opposition pointed out that the cost pressures in the five key areas were apparent before the election and that Labor said it supported the tax cuts only to get elected. Mr Fraser was the head of the RBA and Treasury in the 1980s and early 1990s under the Hawke-Keating Labor governments, and has since been a director of industry superannuation funds. Advertisement “We have Jim Chalmers delivering his speech that attempts to be a rewrite of history in pretending that spending pressures on the NDIS, aged care, defence are new news, whereas all of those spending pressures were well known and accounted for in budget papers pre-election,” Liberal Senate leader Simon Birmingham said. “It’s even more unfair and more unwarranted now, given what’s happened in the short intervening period of the last three years or so,” he said, pointing to the falling real wages of lower income groups and the impact of Covid policies on more vulnerable groups in the community.

“And he’s pretending that global inflationary pressures are new news, whereas in fact, we were talking about global inflationary pressures pre-election.” Dr Chalmers said two new reasons had emerged overnight on Thursday for the government having to break the election promise – the International Monetary Fund warning of the increased risk of a global recession, and the Reserve Bank of Australia pointing out “that the higher interest rates go, the more they will sting ordinary Australians”. He added that the government’s “ambitious” spending program on aged care, childcare and the National Disability Insurance Scheme would be “extremely expensive”. Advertisement “There is no honour in a government standing by a very dodgy commitment,” he said on Thursday. “The backdrop for the budget that I hand down in less than three weeks’ time will be high inflation and rising interest rates, a deteriorating global economy, and persistent structural pressures on the budget which will not be compensated for by higher commodity prices,” he said. “And in this environment of high and rising inflation, difficult global economic conditions, and persistent spending pressures, we will put a premium on what is responsible and affordable and sustainable. This was despite the moderate Liberal backbencher Bridget Archer supporting calls for the government to reassess the $243bn tax cuts in light of changing circumstances.” Not everyone in Labor is convinced that the government should break its solemn election promise to lave the tax cuts unchanged. “It was unfair and unwarranted on the day it was announced, and it’s even more unfair and unwarranted now.

But deputy leader Richard Marles, who in Opposition fought internally against moves for Labor to take a watered-down set of tax cuts to the 2022 election, is said to now support change. Under the tax package, the $120,000-to-$180,000 tax bracket will be scrapped, the top tax bracket threshold will rise from $180,000 to $200,000, and a 30% tax rate will be put in place for those earning between $45,000 and $200,000 – down from 32. Advertisement Australian Workers Union national secretary Daniel Walton said even though many of his members would be affected if the tax cuts were pared back, there was an equity issue about trying to strike te right balance. “It has to be about people in absolute need. Ley emphasised that the package would provide tax relief for people earning $45,000 as well as those on $200,000, saying this was a “core part of these tax cuts. Advertisement The stage three tax cuts – the culmination of a seven-year, three-step process that has already benefited low and middle income earners – would abolish the 37 per cent bracket that applies to income between $120,000 and $180,000, and apply a 30 per cent rate to all earnings between $45,000 and $200,000.” “Their circumstances are materially different to those who are scratching out $40,000 a year,” he said of high-income earners. Greens leader Adam Bandt, who campaigned for the abolition of the tax cuts, said Labor must do more than just pare them back. “It’s a return to the class war rhetoric we saw in 2019.

“If Labor wants to make the case that we should still be giving politicians and billionaires a tax break, that’s a matter for them. Former competition watchdog Rod Sims told the summit that Australia had “maxed out” potential revenue from personal income tax and should reintroduce carbon and mining taxes to fix the federal budget. The public have already made up their minds: no more tax cuts for the wealthy..” is the political editor based in Canberra. He is a two-time winner of the Paul Lyneham award for press gallery excellence. they should say that. Advertisement She said miners paid a combined $43. Connect with .