Albo Tax Con: Every Taxpayer Worse Off
Prime Minister Anthony Albanese claimed he didn’t break an election promise by changing the stage 3 tax cuts at the beginning of 2024. Those earning over $150,000 annually from July 1 2024 were paying more tax than what Albo promised at the 2022 federal election. Albo and his Treasurer Jim Chalmers were tricky when they stated they had no plans to change the stage 3 tax cuts, right until they had plans. They simply changed their position. Political spin of the worst kind.
Going into this election all taxpayers have been worse off under the Albanese Government. Albo and Jim Chalmers chose not to extend the low and middle-income earners tax offset (LMITO) available to those taxpayers earning less than $126,0000 when they came into into government.
The maximum LMITO of $1500 was available to those earning between $48,000 and $90,000 but the maximum tax cut that low and middle-income earners got under Albo’s modified stage 3 will be $804.
The 2025 Federal Budget delivered by Jim Chalmers three days before the 2025 federal election was called promised small tax cuts that won’t begin until July 1 2026. The plan is that in the 2026-27 financial year the 18,201-45,000 tax bracket rate will drop from 16c to 15c. The maximum tax cut will be $268 for those earning over $45,000. Then in 2027-28 the same tax bracket rate will then drop to 14c, again the maximum cut available is another $268.
Even after this round of tax cuts in Albanese’s second term, all taxpayers will be worse off since he became Prime Minister. I haven’t even mentioned how bracket creep as let to all taxpayers paying extra. Wage rises to keep up with inflation push taxpayers into higher tax brackets. But the purchasing power of a dollar has decreased because of inflation, which is why living standards have decreased in Australia despite Albanese bragging that real wages have increased. This is the biggest tax con by Albo, he’s increased your taxes directly and indirectly through bracket creep in his first term.
Albanese hasn’t ruled out tax increases in his next term. Will he and Jim Chalmers change their position on negative gearing and capital gains tax discount next term, like they did with the stage 3 tax cuts if re-elected?
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