Anglicare Australia Urges Government to Scrap Stage 3 Tax Cuts for Cost of Living Relief

MEDIA RELEASE | 30th November 2023

In a move to address the pressing issue of rising living costs, Anglicare Australia has published its latest analysis titled ‘Trickle Up.’ The analysis examines the impact of Stage 3 Tax Cuts, set to be enacted by the current Government, prompting Anglicare Australia to call for their repeal.

The proposed Stage 3 Tax Cuts, initially legislated under the previous administration and set to come into effect under the current government, aim to establish a flat tax rate of 30 cents in the dollar for individuals earning between $45,001 and $200,000. If not repealed before July 2024, these tax cuts will usher in significant changes, including an increase in the top tax bracket threshold from $180,001 to $200,001, the removal of the 37 percent bracket for incomes between $120,001 to $180,000, and a reduction in the tax rate for individuals earning up to $200,000 from 32.5 percent to 30 percent.

Anglicare Australia warns that these alterations will undermine Australia’s progressive taxation system, disproportionately favouring the highest income earners. A projected 78 percent of the tax cuts are projected to benefit the top 20 percent of Australia’s income earners, leaving those earning less than $45,000 with no discernible benefits.

Echoing this sentiment, Anglicare NQ has rallied behind the call to scrap Stage 3 Tax Cuts. Liz Colahan, Chief Executive Officer of Anglicare NQ states, “The intended tax cuts are not in line with the needs of the most vulnerable in our community and will hinder not support the current crisis and challenges faced by the average person in our community.”

Kasy Chambers, Executive Director of Anglicare Australia, emphasises that the tax cuts, instead of providing relief, will intensify the struggles of those in need. Ms Chambers states, “A person on an average income will receive just $14 a fortnight. Someone on a low income will get no benefit at all.”

Furthermore, Ms Chambers points out the stark contrast, noting that individuals on the highest incomes stand to gain almost $350 per fortnight. This substantial amount, as revealed by the analysis, could cover essential expenses such as a tank of petrol, groceries, a fortnight’s worth of car insurance, electricity, and mobile phone use.

Public sentiment aligns with the concerns raised by Anglicare Australia, as reflected in numerous polls indicating widespread disapproval of these tax cuts. Ms Chambers states, “There is no excuse for ignoring Australians doing it tough at the same time as spending a quarter of a trillion dollars on tax cuts.”

In light of these findings, Anglicare Australia urges the Government to prioritize the needs of those facing financial hardship and reconsider the allocation of resources. The call to scrap the Stage 3 Tax Cuts is positioned as a clear choice to redirect financial assistance to Australians grappling with the ongoing cost of living crisis.

END