As announced in the budget, the government has proposed a three tiered personal income tax cut over seven years, beginning with a new $530 low and middle income tax offset, and a slight increase in the 32.5 per cent tax bracket threshold from $87,000 to $90,000.
The Australian Greens leader Richard Di Natale has ruled out supporting the tax cuts, instead calling on both major parties to focus on addressing tax avoidance schemes by multinational companies.
“Both parties’ plans will worsen inequality, and see us lose vital revenue for the essential services people rely upon. And neither of the old parties have a plan to address the tax avoidance system that’s allowing multinational companies to avoid paying a fair share of tax in Australia, said Mr Di Natale.
“When an election is rolling around both old parties are giving away cheques like a breakfast TV show trying to increase their ratings.
“This reckless tax auction is nothing more than a distraction from the millions of dollars stripped from our schools, hospitals and social safety net over the past decade.”
Further, Greens Treasury spokesperson Peter Whish-Wilson said the tax cut package was heavily weighted to the big end of town.
“Students and mothers returning to work part-time will get nothing, yet the Coalition’s package would give thousands back to executives and bankers earning $200,000 a year,” Mr Whish-Wilson said.
“How can Malcolm Turnbull and Bill Shorten look Australians in the eye as they hand out tax cuts to people well above the median wage, yet say people on Newstart should remain below the poverty line?”
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Jotham Lian is the news editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
With a focus on breaking news and exclusive analysis, Jotham keeps Accountants Daily readers up to date with company moves, tax updates and essential business and client strategy.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.