Stage 3 tax changes are welcome news for most Australians

The St Vincent de Paul Society in Australia has long advocated for the Stage 3 tax cuts legislated five years ago to be dropped or significantly reviewed because they are unfair and increase inequity. Today, the Society welcomes the adjustments announced by the Prime Minister.

‘We note that all wage earners will benefit and that the new schedule is no longer skewed upwards but focused on low and mid-level wage earners. These are the average Australians struggling with the high cost of food, electricity, rents and mortgages and other essentials,’ said the Society’s National President, Mark Gaetani.

‘People on average incomes will see a doubling of their tax benefit and this will help create a fairer Australia, which is the focus of our advocacy positions,’ he added.

Mr Gaetani said the Society is now hearing from many working people who are struggling to make ends meet and who have never contacted a charity for assistance.

‘In recent months, the calls for assistance have risen by up to 40 per cent, making it almost impossible for charities to meet all the demands. We explained this to the Government in our Pre-Budget submission.

‘These tax cuts are considerable and are targeted at providing much-needed help to working households. The benefits will be felt from 1 July onwards. Until then, the hardship will continue.

‘It is a relief that the cuts are not expected to have an inflationary impact on the cost of living, as so many things have become unaffordable, such as healthy food and medical bills.

‘It was heartening to hear the Prime Minister say that no one will be left behind, but the Society remains concerned that a significant number of Australians may derive little benefit from the revised tax schedule.

‘A number of other economic strategies are needed to assist people doing it tough, with attention on those people on benefits. We could lift 834,000 people out of poverty by increasing working age payments. This was explained in detail in the research we commissioned from the ANU (Fairer Tax and Welfare System).

‘So many Australians are relying on inadequate welfare payments that keep them struggling day to day. The Government’s own Economic Inclusion Advisory Committee supports working age payments being increased and we also see this as a key social priority.

Mr Gaetani said the Society holds strong hopes that other relief measures will be announced in the lead-up to the Federal Budget in May or at that time.

‘Our 2024-25 Pre-Budget submission steps out what is needed to improve people’s lives,’ he said.

 

The St Vincent de Paul Society in Australia consists of 45,000 members and volunteers who operate on the ground through over 1,000 groups located in local communities across the country.

 

MEDIA CONTACT
0475 068 209 or media@svdp.org.au