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Prime Minister Anthony Albanese commits to stage three tax cuts despite cost-of-living concerns

Prime Minister Anthony Albanese has committed to stage three tax cuts, despite growing calls for the measures to be scrapped for other cost-of-living relief measures.

The tax cuts were unveiled by the former coalition government in the 2019 federal budget, and are due to come into effect on July 1.

WATCH THE VIDEO ABOVE: Albanese government feeling heat over stage three tax cuts.

Watch the latest news and stream for free on 7plus >>

Speaking to FIVEaa radio in Adelaide on Wednesday morning, Albanese said the government has not changed its position.

The cuts are the final phase of the former Coalition government’s adjustments to Australia’s taxation system.

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At present, Australia’s tax brackets look like this:

People earning up to $18,000 pay no taxThose earning between $18,001 and $45,000 pay a 19 per cent tax rateWorkers earning between $45,001 and $120,000 pay a 32.5 per cent tax rateThose earning between $120,001 and $180,000 pay a 37 per cent tax rateAnyone earning $180,001 or more pays a 45 per cent tax rate

Under stage three tax cuts, there will be a single tax rate of 30 per cent for all earners between $45,000 and $200,000.

The stage three tax cuts have been criticised for delivering larger cuts for those earning more than $200,000 annually, compared to those on lower incomes.

The cost of the tax cuts has also come under fire, with the change expected to reduce government revenue by about $69 billion over the next four years.

Progressive think tank the Australia Institute found that high-income jobs including CEOs and federal politicians would pay as much as $9075 less in tax.

Some 600,000 people are estimated to fall into this bracket.

Labor went to the last federal election promising to keep the stage three tax cuts legislated by the previous government in place.

The government has come under fire for not scrapping the tax cuts and using other methods to provide cost-of-living relief at a time of high inflation and rising interest rates.

Prime Minister Anthony Albanese. Credit: AAP

“Tax cuts are important to provide relief for people,” Albanese said on Wednesday.

“At the moment, these cuts cut in at $45,000. That’s not a wealthy position, far from it, of course. And we think that given cost of living pressures, the beginning of the next financial year is the right time to bring in income tax relief.

“And that is what we will be doing. We’ve had a range of targeted measures to take pressure off the cost of living, cheaper childcare, the Fee Free TAFE is one of them, as well as cheaper medicines and our energy price relief plan that have all made a difference.

“Inflation is heading in the right direction. It fell to 4.3 per cent. We were heartened by that.

“There’s more work to do to make sure that we win the fight against inflation because that is having an impact.”

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