MEMBER for Mallee Anne Webster and Farrer MP Sussan Ley have criticised the Federal Government over tax cuts that will save the typical Mildura worker $797.
Cabinet this week approved changes to the stage-three tax cuts set to come into effect on July 1.
All taxpayers would still receive a tax cut under the move, which still needs to pass parliament.
However, people with a taxable income above $150,000 would receive a smaller saving than previously planned, while anyone earning under $150,000 – said to be 84 per cent of taxpayers – would get a bigger tax cut.
Dr Webster said the change represented a broken promise after Labor twice voted for the previous stage-three model.
In a speech to the National Press Club on Thursday afternoon, Prime Minister Anthony Albanese said a tax cut would now be delivered for “all 13.6 million taxpayers, not just some”.
“This is the right decision, not the easy decision,” he said.
“We’ve had to deal with a global pandemic, a recession, damaged supply chains, conflict in Europe and the Middle East, rapid increases in the price of food and energy, and ongoing worldwide economic uncertainty.
“If we were to simply proceed with the old plan – promoted before any of these challenges even existed – it would mean middle Australia missing out on the help they need and deserve.”
Those earning less than $45,000, who were originally set to get no tax cut, now would.
People on the median 2020-21 taxable income in the Mildura postcode, which was $44,754 according to the Australian Taxation Office, would go from receiving nothing to getting a $797 cut.
A taxpayer earning $75,000 would get $1554, up from $750.
Dr Webster questioned whether too much of the tax burden would be falling on higher-income earners.
“These changes potentially leave less than 12 per cent of all Australians paying over 50 per cent of the national income tax bill,” the Nationals MP told Sunraysia Daily.
“These are the hard-working small business owners and aspirational Australians who have worked incredibly hard during the pandemic to keep their businesses going and grown the Australian economy.
“There will be many in Mallee who benefit from the proposed changes, but the primary issue here is trust.
“As we head to an election, can Mallee voters believe a single promise the Albanese Labor government makes?”
Liberal MP Ms Ley earlier in the week claimed the government’s 2022 election victory was “built on a lie”.
“I remember (Mr Albanese) looking straight into the eyes of the Australian people and saying, ‘My word is my bond and I won’t change the stage-three tax cuts’,” Ms Ley told Sky News.
“But … this was the plan all along. The election was won on a lie.
“Every single Labor MP lied to their community, and they need to stand up and explain that today.
“What’s so disappointing is it’s not about economics, it’s not about economic plan, it’s all about the politics.”
Mr Albanese addressed the Coalition’s comments in his speech for rejecting the tax changes before they had been officially announced.
“They don’t know what it looks like. They don’t care who it will help. The only thing they are interested in is having a fight,” he said.
