The big question prior to Treasurer Jim Chalmers delivering the Albanese government’s first budget on October 26 has been whether it will seek to modify the “stage 3” tax cuts legislated by the Morrison government, with Labor’s support.
The cuts, set to come into effect in 2024, reduce the marginal tax paid on incomes between $45,000 and $200,000 to 30% (instead of the 32.5% now paid up to $120,000, 37% between $120,000 and $180,000, and 45% after that).
Labor promised before the election it would implement the cuts, but over the past few weeks it has encouraged a debate about abandoning this position, given changed circumstances. Nevertheless, it now appears the tax cuts will go ahead as legislated.
