Stage 3 tax cuts

[Billy ray]

It’s inflationary
It’s not econically sustainable from a budget point of view
We have other spending priorities
The Uber rich types (read high income types) will just invest eg drive up asset prices including housing

I can’t think of any good reason to do it.
Even the $9k I would pocket - nope.
But there’s crickets from media because they too are gonna get $9k

Some may be spent overseas. On holidays etc. still pent up demand for travel post covid. Export that inflation.
But i reckon most will spend it to get ahead in their mortgages or catch up in mortgages.

 

[Cap]

Some may be spent overseas. On holidays etc. still pent up demand for travel post covid. Export that inflation.
But i reckon most will spend it to get ahead in their mortgages or catch up in mortgages.

I think to are on the money.

There are doing to be people on $120k + who took huge mortgages out who would be trying to hold out until the rates start falling later next year and these tax cuts start coming through.

 

[Crankyhawk]

I think to are on the money.

There are doing to be people on $120k + who took huge mortgages out who would be trying to hold out until the rates start falling later next year and these tax cuts start coming through.

Stupid to over extend themselves.

 

[Crankyhawk]

Stupid to over extend themselves.

And they could probably sub let a room that would help (with so many unable to find rental)

 

[Cap]

Stupid to over extend themselves.

It's easy to say that, it's not wrong either.

But I still always some people who have been impacted by certain RBA comments re:2024 and had no idea how much inflation was going to impact the country.

 

[Caesar]

That's a really well done article.

It’s a very effective article. The visualisation has several rather misleading aspects though

For example - it compares 1-year average salary to 10-year total revenue (not really apples and apples). On the flip side, nowhere do they show the cuts in proportion to the total 10-year tax take.

I also have a general problem with looking at the Stage 3 cuts in isolation as they were passed as a package - Stage 3 doesn’t occur without Stages 1 & 2, and vice versa - the phased timing doesn’t make it a discrete policy

Generally speaking it is more editorialising than I am comfortable with from the ABC

 

[Lia]

I suspect that the government knows that the cuts are poor policy especially during times of high inflation, but just like the gas situation, they will squib the issue and will make some half hearted changes at best.

 

[Northalives]

The stage 3 tax cuts are bad policy but they were legislated and passed by the former Government. They are not due to come into effect until next year I believe, that is, after the next budget so we should keep agitating for their scrapping between now and then.

I don't think that they are a fait accompli though. I just have a feeling that it's a political decision not to flat out deny that they will be scrapped but rather, the ALP sticking to the line that they have already been legislated. I think that there is a real possibility that they will be "tweaked".

I could well be wrong but that won't stop me saying that the tax cuts are wrong. We shall just have to wait and see what will happen at the next budget.

 

[Crankyhawk]

The stage 3 tax cuts are bad policy but they were legislated and passed by the former Government. They are not due to come into effect until next year I believe, that is, after the next budget so we should keep agitating for their scrapping between now and then.

I don't think that they are a fait accompli though. I just have a feeling that it's a political decision not to flat out deny that they will be scrapped but rather, the ALP sticking to the line that they have already been legislated. I think that there is a real possibility that they will be "tweaked".

I could well be wrong but that won't stop me saying that the tax cuts are wrong. We shall just have to wait and see what will happen at the next budget.

I want them completely junked, but will tolerate the lowering of the rate from 32.5 to 30c and leaving the 37 c rate intact.

 

[Northalives]

I want them completely junked, but will tolerate the lowering of the rate from 32.5 to 30c and leaving the 37 c rate intact.

I'm with you. I want to see them ditched also. I do have a degree of faith in Dr. Jim though. I reckon he could well alter these tax cuts to compensate for bracket creep but re-establish the principles of progressive tax rates. It's a hope which I would like to see realised.

 

[Kwality]

re-establish the principles of progressive tax rates. It's a hope which I would like to see realised.

I agree with your sentiment & hope it would be a transparent document based on fairness not who loses.

 

[Caesar]

The government made an election promise to not mess with the tax cuts and they would be political dunces to break that

Won’t happen, if they want to recoup tax revenue they will do it elsewhere