If the opposition decides against backing Labor’s tax plan, the move will be another key policy difference between the 2 major parties. Opposition Leader Peter Dutton has indicated the Liberal-National Coalition will back lower taxes for Australians amid Labor’s changes to the country’s tax structure. The Albanese government is planning to introduce legislation into parliament next week providing tax cuts for low and middle-income earners. However, the Labor proposal reneges on an election promise to abolish the 37 percent tax rate for those earning between $120,000 and $180,000 a year.
The Coalition is yet to see the proposed details and will meet as a team early next week to formalize a position. While the Coalition is yet to show its hand, Mr. Dutton said on the Today Show that “the Liberal Party has always been the party of lower taxes and that’s going to continue.” The federal government 2024 tax plan involves lowering the 19 percent tax rate to 16 percent for incomes between $18,200 and $45,000 and reducing the 32.5 percent tax rate to 30 percent for incomes between $45,000 and $135,000, while lifting the 37 percent tax rate threshold to $135,000. A 45 percent tax rate threshold would be increased from $180,000 to $190,000 under the plan.
When asked if the Coalition would “take away money” from the electorate, Mr. Dutton said, “We are not going to, I’ve been very clear about that.” “We’ll announce our position in due course, but we think there’s a massive black hole in what the government’s doing at the moment. We don’t understand how they can be arguing that they’ll take an extra $28 billion over the next few years. It’s not 1.8 million taxpayers who are worse off, it’s actually 4 million taxpayers over the course of the next decade.
Albanese Touts Tax Cuts. Prime Minister Anthony Albanese, speaking to reporters on Feb. 2, said, “We have a plan that we will put to the Parliament of every Australian taxpayer getting a tax cut.” Treasurer Jim Chalmers said Labor’s “cost of living tax cut” for middle Australia is “all about supporting the hard work of people who make our economy and our country strong.” In response, Shadow Treasurer Angus Taylor said the Coalition has not seen the legislation yet but that it would “support lower, simpler, fairer taxes.”