The Albanese Labor government is planning to spend $40 million (US$26 million) of public funds on an advertising campaign to sell tax cuts. The decision to spend the money was confirmed by Finance Minister Katy Gallagher, but the campaign hasn’t been finalized. There has been criticism from the Coalition and demands for questions to be answered about the campaign. Shadow Treasurer Angus Taylor has said this is an example of the government wasting money and going back on its word.
The tax cuts renege on an election promise to abolish the 37 percent tax rate for those earning between $120,000 and $180,000 a year. The new tax plan was legislated by the Morrison government. Shadow Finance Minister Jane Hume and other officials have raised questions about the tax cuts and whether they will be effective.
The tax plan cuts involve lowering the 19 percent tax rate to 16 percent for income between $18,200 and $45,000, and other changes to tax brackets. These changes have received mixed reactions from politicians and the public. Despite passing the lower house of Parliament, concerns about the impact of the tax cuts and costs have been voiced by various officials.
The passage of the bill by the Coalition has been celebrated by Prime Minister Anthony Albanese as a great day, providing tax cuts for millions of Australians. However, others argue that the bill will not deal with the cost of living crisis in Australia. Concerns have also been raised about the tax cuts and the responsibility of the government in managing both budget and economy.