Anthony Albanese promises millions of Australians huge tax cuts


Anthony Albanese promises millions of Australians huge tax cuts as he hints at what’s to come in his first federal budget – here’s what it means for you

The prime minister has admitted the government will have to place a cap on spending when it hands down its first budget, but he’s still promising to keep tax cuts for Australians.

Anthony Albanese said while the federal budget, due to be handed down in October, will fulfil commitments Labor made at the election, there was a difficult fiscal repair job ahead.

‘We’re going to have to really put the brakes on some of the spending which is there,’ Mr Albanese told the ABC’s 7.30 program.

‘There are a range of things we would like to do that we won’t be able to do in our first budget.

‘We will also be going through line by line, looking at the waste which is there, and already, we’ve identified a range of measures that were made by the former government that frankly don’t stack up.’

Mr Albanese said election commitments of cheaper childcare, setting up Jobs and Skills Australia and climate change policies would be key themes of the budget.

However, he said he would not repeal income tax cuts for high income earners, which had already been legislated.

‘They are legislated, and one of the things that people have a right to believe is that when a politician makes a commitment before an election, they keep it, and I intend to do that,’ Mr Albanese said.

‘What we need as well is to have certainty, people have made assessments based upon the certainty that comes through legislated tax changes, and we intend to fulfil that.’

The new government was elected in the wake of rising cost of living pressures and soaring inflation levels, which have reached some of the highest rates in decades.

The prime minister said there was a need to have talks with the states and territories about services able to be provided by the federal government following constraints on the economy.

‘We know that we’ve got the NDIS (which) has been growing, we know there are other pressures as well,’ he said.

‘We know they’ve got to be paid for, we know one way we can do that is to grow the economy, but we need to examine it and have that national discussion.’

Millions of taxpayers are set to benefit from tax cuts and receive government support when buying their new home. 

Anthony Albanese is set to bring in a raft of tax changes following his election win with first homebuyers to benefit the most

Anthony Albanese is set to bring in a raft of tax changes following his election win with first homebuyers to benefit the most

Millions of taxpayers are set to benefit from tax cuts, lose the Low and Middle Income Tax Offset and receive government support when buying their new home

Millions of taxpayers are set to benefit from tax cuts, lose the Low and Middle Income Tax Offset and receive government support when buying their new home

Labor will support the implementation of the stage-three income tax cuts in 2024 which will create a flat rate of 30 per cent between $45,000 and $200,000.

The move mostly benefits those earning more than $120,000 who are currently taxed at 37 per cent.

A worker earning $90,000 a year could save an extra $1,125 on taxes while a resident earning $200,000 a year could enjoy another $9,075.

Labor will also honour the abolition of the Low and Middle Income Tax Offset.

Income earners on up to $126,000 have received the lower and middle income tax offset worth up to $1,080 a year each financial year since 2018-19. 

The offset was due to end when stage two tax cuts came into play but was extended for two more years after the cuts were brought forward to 2020 due to the pandemic.

The end of the rebate means that Aussies earning up to $126,000 will pay up to $1,500 more income tax in 2023 than this year.

Unemployed Australians receiving Centrelink payments will be left behind after Labor ditched its plans to review the rate of JobSeeker. 

Former Labor leader Bill Shorten said he would set up a review into the allowance during the 2019 election, but the promise was quietly ditched. 

A single person currently earns $642.70 a fortnight or $46 a day.

Treasury spokesman Andrew Leigh said his party had not ‘committed to an additional increase’. 

Labor has dropped its 2019 policy to ban negative gearing, a major tax bonus for property investors which economists say pushes up house prices.

Labor has dropped its 2019 policy to ban negative gearing, a major tax bonus for property investors which economists say pushes up house prices

Labor has dropped its 2019 policy to ban negative gearing, a major tax bonus for property investors which economists say pushes up house prices

Winners and losers of tax changes 

WINNERS

  •  Stage-three income tax cuts

Labor will support the implementation of the stage-three income tax cuts in 2024 which will create a flat rate of 30 per cent between $45,000 and $200,000.

The move mostly benefits those earning more than $120,000 who are currently taxed at 37 per cent.

A worker earning $90,000 a year could save an extra $1,125 on taxes while a resident earning $200,000 a year could enjoy another $9,075.

  • Negative gearing dropped 

Labor has dropped its 2019 policy to ban negative gearing, a major tax bonus for property investors which economists say pushes up house prices. 

  • ‘Help to Buy’ scheme 

Mr Albanese has proposed a ‘help to buy’ scheme which would see the government take a 40 per cent stake in up to 10,000 homes a year.

The scheme will only be available to couples earning less than $120,000 and singles earning less than $90,000. 

Labor admitted that if someone on the scheme starts earning over the threshold then they will have to buy out the government’s stake – or sell the house.

This would also apply if the owner died and their children who inherited it earned over the threshold.

WORSE OFF 

  • Jobseeker boost ditched 

Unemployed Australians receiving Centrelink payments will be left behind after Labor ditched its plans to review the rate of JobSeeker. 

Former Labor leader Bill Shorten said he would set up a review into the allowance during the 2019 election, but the promise was quietly ditched. 

A single person currently earns $642.70 a fortnight or $46 a day.

Treasury spokesman Andrew Leigh said his party had not ‘committed to an additional increase’. 

  • Abolition of Low and Middle Income Tax Offset 

Labor will also honour the abolition of the Low and Middle Income Tax Offset.

Income earners on up to $126,000 have received the lower and middle income tax offset worth up to $1,080 a year each financial year since 2018-19. 

The offset was due to end when stage two tax cuts came into play but was extended for two more years after the cuts were brought forward to 2020 due to the pandemic.

The end of the rebate means that Aussies earning up to $126,000 will pay up to $1,500 more income tax in 2023 than this year.

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Mr Albanese has proposed a ‘help to buy’ scheme which would see the government take a 40 per cent stake in up to 10,000 homes a year.

The scheme will only be available to couples earning less than $120,000 and singles earning less than $90,000. 

Labor admitted that if someone on the scheme starts earning over the threshold then they will have to buy out the government’s stake – or sell the house.

This would also apply if the owner died and their children who inherited it earned over the threshold.

Mr Albanese will also create a $10billion Housing Australia Future Fund to build 30,000 new social and affordable housing properties in its first five years.

Unemployed Australians receiving Centrelink payments will be left behind after Labor ditched its plans to review the rate of JobSeeker

Unemployed Australians receiving Centrelink payments will be left behind after Labor ditched its plans to review the rate of JobSeeker

Former Labor leader Bill Shorten said he would set up a review into Jobseeker during the 2019 election, but the promise was quietly ditched

Former Labor leader Bill Shorten said he would set up a review into Jobseeker during the 2019 election, but the promise was quietly ditched

LABOR’S HOUSING AUSTRALIA FUTURE FUND AND HELP TO BUY SCHEME QUICK FACTS

HOUSING AUSTRALIA FUTURE FUND

Under the Housing Australia Future Fund the Labor Party has promised to build: 

  • 16,000 social housing properties
  • 4,000 social housing properties specifically for women and children fleeing domestic violence
  •  10,000 affordable homes for frontline workers (police, nurses, etc.)

Labor claims the fund will create 21,500 full-time construction jobs (10 per cent of which will be allocated for apprenticeships)

Returns from the investment in the next five years will fund: 

  • $200 million for repairs, maintenance and improvements of housing in remote Indigenous communities
  • $100 million for crisis and transitional housing for women and children fleeing domestic violence and elderly women at risk of homelessness
  • $30 million to fund future social housing and specialist services for at-risk veterans 

HELP TO BUY SCHEME 

Labor’s promises under the Help to Buy Scheme:

  • Cost of buying a home cut by 40 per cent
  • 10,000 Australians to benefit every year
  • An equity contribution from the Federal Government of up to a maximum of 40 per cent of the purchase price of a new home 
  • An equity contribution from the Federal Government up to a maximum of 30 per cent of the purchase price for an existing home 

To be eligible for the scheme you must:

  • Be an Australian citizen aged 18 years or older
  • Earn less than $90,000 a year (for individuals)
  • Earn less than $120,000 a year (for couples) 
  • Use the purchased home as your principal place of residence
  • Not own any other property – in Australia or overseas
  • Have saved a minimum two per cent deposit
  • Pay for associated purchase costs (stamp duty, legal fees, etc.) 

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Help for first home buyers, free TAFE, HUGE spending, a radical climate agenda, and new gender laws: What left-wing Anthony Albanese becoming Australia’s PM means for YOU 

By Stephen Johnson, Nic White, and Charlie Moore for Daily Mail Australia 

Help for first home buyers

Labor will introduce a ‘Help to Buy’ scheme where the government would take a 40 per cent stake in up to 10,000 homes a year to help people earning less than $90,000 on to the property ladder.

Mr Albanese will also create a $10 billion Housing Australia Future Fund to build 30,000 new social and affordable housing properties in its first five years.

Childcare changes

One of Labor’s most significant policies is to increase childcare subsidies for all families earning less than $530,000.

‘We can write universal childcare into that proud tradition,’ Mr Albanese told supporters.

Mr Albanese would remove a cap that prevents families earning more than $189,390 from receiving more than $10,560 a year in subsidies.

A family on $189,390 that uses childcare five days a week would instead get $21,608 in subsidies, more than double the current allowance.

Lower income families would also benefit from increased subsidies. For example, a family taking home $80,000 a year would get an extra $2,389 a year for full-time care.

Labor will also launch a review into providing a 90 per cent universal childcare subsidy.

Tax Cuts

Labor will implement the stage-three income tax cuts in 2024, which will create a flat rate of 30 per cent between $45,000 and $200,000.

The move mostly benefits those earning more than $120,000, who are now still taxed at 37 per cent.

Labor dropped its 2019 policy to ban negative gearing, a major tax bonus for property investors which economists say pushes up house prices.

Mr Albanese talked about Labor as the party of opportunity, using the language of self improvement over class warfare in his speech.

‘But also no one held back: of course, we should always support aspiration and opportunity,’ he said.

Education

Labor will provide 465,000 free TAFE places and 20,000 extra university places under a $1.2 billion plan.

The free TAFE places will be for courses in industries with a skills shortages such as trades and construction, resources, digital and cyber security, new energy, and advanced manufacturing.

Labor has no plans to reduce university fees after the Coalition hiked prices for humanities courses.  

Access to GPs

Mr Albanese has pledged to build 50 first-aid clinics across the country.

The clinics will treat non-life threatening injuries such as broken bones, minor burns, cuts and animal stings and be open every day between 8am to 10pm.

He also promised to spend $750 million over four years to improve access to GPs including outside business hours.

Labor will increase government subsidies for medicines on the Pharmaceutical Benefits Scheme by reducing the maximum cost for the patient from $42.50 to $30 per script.

Defence and borders

Labor is backing the AUKUS alliance and obtaining nuclear-powered submarines to counter the rise of China.

Labor supports boat turn-backs and offshore processing but would scrap temporary protection visas. This would allow thousands of refugees already living in Australia to stay permanently.

The Coalition argued such a move would encourage people smugglers to start sending boats here again.

Climate change

Labor is committed to net zero emissions by 2050 with a target of 43 per cent reduction by 2030 – more than the Coalition’s 26-28 per cent.

Together, we can take advantage of the opportunity for Australia to be a renewable energy superpower,’ Mr Albanese declared in his victory speech.

Labor will spend $20 billion to upgrade the electricity grid to improve transmission, roll out 85 solar banks and 400 community batteries and invest in 10,000 ‘new energy apprentices’ alongside a $10 million new energy skills program.

Mr Albanese said the plan would allow cheaper renewable sources to supply 82 per cent of electricity by 2030.

The plan is projected to create 604,000 jobs and slash average household energy prices by $275 a year by 2025 and $378 by 2035.

The new Labor government will also spend $3 billion on renewables manufacturing and deploying low-emissions technologies – as well as remove taxes on electric cars to make them cheaper.

Aged care changes

Mr Albanese outlined plans to improve aged care after a Royal Commission reported shocking incidences of neglect.

Labor sparked controversy by announcing it would require aged care homes to have a nurse on site 24 hours a day, seven days a week, from July 2023, a year before the Commission recommended.

The ALP will also make a submission to the Fair Work Commission to support a pay rise for aged care workers.

‘Together, we can fix the crisis in aged care,’ Mr Albanese said.

Anthony Albanese has vowed to introduce a law forcing companies to reveal how much they pay men and women if he becomes prime minister.

Manufacturing

Labor will set up a $15 billion National Reconstruction Fund to fund major manufacturing projects across the nation.

The fund will provide loans, guarantees and equity to support projects in resources, transport, agriculture, medicine, energy, and defence.

Labor said the policy would ‘secure well-paid jobs, drive regional development, and invest in our national sovereign capability, broadening and diversifying Australia’s economy’.

Trains, trams, and ferries will be made in Australia instead of overseas and a fast rail line between Sydney and Newcastle will be built.

Corruption watchdog

Labor will set up a federal integrity commission which the Morrison Government promised in 2019 then failed to deliver.

The Coalition’s proposed model cannot hold its own independent inquiries, public inquiries or investigate past scandals but Labor’s would be able to do all these things.

Industrial Relations

Labor will implement a series of industrial relations reforms to re-define casual work and give Australians more chance at securing permanent jobs.

In March 2021 the government defined casual work for the first time as a situation where a worker has ‘no firm advance commitment to continuing and indefinite work according to an agreed pattern of work’.

But Labor will change this so employment status is determined by workers’ shift patterns.

If an employee has regular shifts for a defined time period then they would be permanent not casual, such as a coal miner who has a 12 month fixed roster.

Mr Albanese will improve the rights of so-called gig workers such as Uber drivers and Deliveroo drivers.

Labor will extend the powers of the Fair Work Commission to include ’employee-like’ forms of work, meaning they would need to receive minimum wage.

The ALP will also bring in new laws to make sure workers who do the same job are paid the same if they are employed directly or through labour hire firms.

And pay secrecy clauses in employment contracts designed to stop workers talking about their pay-packets will be banned.

 

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