Stage 3 tax cuts would worsen inequality

Earlier this week, Business Council of Australia (BCA) CEO, Jennifer Westacott, urged the federal government to bring forward its Stage 3 tax cuts, which are currently scheduled to take effect from 1 July 2024.

New research from The Australia Institute (TAI) shows why this would be a retrograde move that would worsen inequality:

In July 2024, the third and final stage of the Commonwealth Government’s income tax plan will come into effect. The tax cut will cost the budget $18 billion in 2024-25.

This stage of the tax cut will:

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.