Rural residents to benefit least from planned tax cuts

Australians in regional and rural areas will be left behind the most when stage three tax cuts come into effect, new analysis has shown.

A report by Anglicare Australia found the tax cuts would most benefit people living in wealthy areas of major cities, while those most likely to miss out were in regional areas.

The cuts, which come into effect from July 2024, would create a tax rate of 30 per cent for anyone earning between $45,001 and $200,000.

The changes, estimated to cost more than $250 billion over the next 10 years, will also increase the bottom end of the top tax bracket from $180,000 to $200,000.

The report found of the 10 areas of the country least affected by the tax changes, all were in regional or rural locations.

Tasmanians were also the least likely of any state or territory to see tax changes, with just 12 per cent of residents being beneficiary of the changes, compared to ACT residents, who had the most beneficiaries at 31.5 per cent.

Anglicare’s executive director Kasy Chambers said the tax cuts were forsaking those in vulnerable areas.

“Regional and rural areas that are struggling to cope with rising living costs will see almost no benefit,” she said.

“This is a clear choice. If the government can afford to spend a quarter of a trillion dollars on the country’s wealthiest areas, then it can surely afford to help those who have been hit the hardest by the cost-of-living crisis.”

Estimates have shown 78 per cent of the tax cuts will go to 20 per cent of Australia’s highest income earners.

The government had committed before the election to keep the tax cuts, which were legislated by the coalition in 2019.

However, Labor has been coming under pressure to drop the planned tax changes to free up more money in the federal budget.

“When the tax cuts were passed in 2019, Australians were told they would be better off. Our analysis shows that’s not true,” Ms Chambers said.

“In the years since these changes were planned, our world has changed. Australians have lived through fires, floods, and a pandemic only to enter a cost-of-living crisis.”


Andrew Brown
(Australian Associated Press)


Like This