Changes to income tax

Labor’s highest priority has always been to get more money into the hands of more workers sooner, to boost the floundering economy.

We took to the election bigger, fairer tax cuts for people on low and middle incomes and after the election we proposed amendments which were all about passing the first two stages, bringing forward part of Stage 2, and removing Stage 3 from the Bill.

We fought hard for these responsible, sensible changes but ultimately they weren’t supported in either house. 

When it became impossible to get everything we wanted, we had to prioritise what matters most.

We didn’t oppose the passage of the legislation because we want to make sure Australians receive their tax cut now and that the benefits of the first stage start circulating through the economy and aren’t further delayed.

Unfortunately, the Government’s highest priority was to commit to a $95 billion tax cut in five years without revealing what they will cut to pay for it or knowing what the Budget and economy will look like at that point.

We have argued that it is irresponsible to commit to Stage 3 five years out, and that remains our view.

We will review Stage 3 closer to the next election and propose our own policies which take into account the economic and Budget conditions at the time.