The government’s latest income tax cuts provide relief to the poor – or give more money to the rich – depending on who’s speaking.
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Victorian Senator Bridget McKenzie praised the package, saying it would give regional Victorians more money to spend.
“Over 54,000 people across Indi will benefit from tax relief of up to $530 in 2018-19 – that’s $2120 over four years, in your back pocket,” she said.
“This is a win for those living in the Albury-Wodonga region who want to get ahead, allowing hard-working people to keep more of their own money in their own pockets.
“Tax cuts lead to higher wages, economic growth and more jobs while fulfilling the federal government’s commitment to helping families, small businesses and farmers.”
The first part of the $144 billion reform will see the 37 per cent tax threshold rise from $87,000 to $90,000.
By 2028 that tax rate will be eliminated altogether, with 90 per cent of taxpayers paying 32.5 per cent for every dollar they earn between $40,000 and $200,000.
However, federal member for Indi Cathy McGowan said it was disappointing the Parliament voted to “give a whole lot of wealthy people more money at the cost of services.”
Ms McGowan voted against the plan. She said combining both parts of the reform was “bad practice” by the government and not “good for the country”.
“The government has now given all the rich people of Australia a huge big cut in income tax,” she said.
“I don’t think that’s right, I was really supportive of an income tax cut to low and middle income earners, I think that’s right and proper and needed but wrapping it all up together I think is really disappointing.
“We have got enormous cost in this country we’ve got to actually make preparation for the long term and giving the huge, big income tax cut to wealthy people I think is irresponsible.”
Member for Farrer Sussan Ley voted in support of the tax reform.
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