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The Federal Government is copping some heat at present over uncertainty around so-called stage 3 tax cuts, which are set to provide tax relief to millions of Australians.
Due to begin on July 1, 2024, Treasurer Jim Chalmers created a stir when he wouldn’t rule out changing the planned cuts recently.
Prime Minister Anthony Albanese has since moved to water down speculation that the cuts would be scrapped or pared back — but doubt remains.
Rising Tide director and head of financial planning Matt Hale weighed in on the issue when he joined the 3AW breakfast team.
With close to a million listeners tuning in, we think Matt did a fantastic job discussing the controversial topic.
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In a nutshell, Matt explained that it seemed everything was on the table now.
He said a lot had changed in the world since the stage 3 tax cuts were promised and the government could use that to renege on the income tax relief.
If that happened, many millions of Australians would be impacted, said Matt.
He pointed out, though, that the talk remained hearsay, so anything was still possible.
The Albanese government is due to deliver its first budget later this month.
The cost of the stage 3 tax cuts – which will abolish the current 37 per cent tax bracket, lower the existing 32.5 per cent bracket to 30 per cent, and raise the threshold for the top tax bracket from $180,001 to $200,001 – is estimated to be $243 billion in lost tax revenue in the decade after they’re rolled out.