Income tax cuts passed in Parliament
Federal Independent Member for Indi, Cathy McGowan, says feedback from the 2018 Indi Budget Survey informed her decision to vote against the Government’s Personal Income Tax Bill 2018.
Amendments to the Bill were rejected in the House of Representatives on Thursday morning before it returned to the Senate and passed unamended.
“Feedback from Indi people to the Budget Survey showed a real concern for the Government’s Income Tax Bill,” Ms McGowan said.
“It also showed that the people of Indi want a fair tax system, which this Bill does not entirely offer.
Ms McGowan said the tax system needed to be progressive and address bracket creep.
“These tax cuts have three stages, with stage three being the most unfair,” Ms McGowan said
“I support tax cuts for low and middle income earners but I do not support tax breaks for the wealthy. When the Bill first came before parliament, I voted in support of stage one and parts of stage two. I did not support the elements of stage two that will lift the 37% threshold from $90,000 to $200,000 by 1 July 2024.
“I also did not support a flattening of the tax thresholds that will see someone earning $41,000 a year paying the same marginal tax rate as someone on a $200,000 annual salary.”
Stage one of the tax cuts will take effect from 1 July 2018.