The Australia Institute has recently released a report that has revealed the federal government’s stage three tax cuts could further exacerbate the divide between wealthy metropolitan city-dwellers and lower-income regional citizens.
The report found the 20 electorates identified to benefit the least from the tax breaks were predominantly located in rural Australia, with four alone located in Tasmania. Conversely, the 20 electorates to reap the most from the tax changes were predominantly located in inner-metropolitan areas of Sydney and Melbourne.
The former Morrison government’s legislated changes to personal income tax, with its most controversial stage being the third tax cuts, will come into effect in July 2024. Those earning between $45,001 and $200,000 will be paying the same tax rate, with people earning more than $180,000 receiving the largest benefit from the changes.
Despite the projected cost of over $254 billion, the Albanese government has still kept its promise to implement tax cuts. Recently, Matt Grudnoff, a senior economist, released a report that concluded of all the 151 electorates in Australia, North Sydney is the most likely to gain the most from the tax cuts, with an estimated $331 million less in taxes each year. In comparison, Lyons in Tasmania will pay $39 million less taxes annually.