Labor has said it would reverse the Government’s legislated income tax plan and not support most of our enhanced plan announced in the 2019-20 Budget.
Our legislated plan, enhanced in the 2019-20 Budget, provides lower taxes for hard-working Australians. Low and middle income earners will have their tax reduced by up to $1,080 for single earners or up to $2,160 for dual-income earners after lodging their tax-returns as early as 1 July 2019.
Once our full plan comes into effect, 94 per cent of taxpayers will pay no more than 30 cents in the dollar.
Income taxes under Labor would be $230 billion higher. Labor has said it would cut our legislated tax relief in half. Further, in the 2019-20 Budget, we have announced $158 billion of additional personal income tax relief.
Under Labor, as incomes rise, more Australians would move into higher tax brackets. Labor would also reimpose the 2% Budget Repair Levy despite the fact we are returning the Budget to surplus. This would impose further tax increases, on top of Labor’s $230 billion income tax hike.
This would increase the top marginal rate to 49% – significantly higher than the US, UK and New Zealand.
Labor would also reverse the increase of the top tax threshold. This means there would be more than 1 million Australians paying the top rate within six years – nearly double the current number.
Former Labor Prime Minister Paul Keating has described the Shorten tax hike as “too punitive a level where the state is confiscating almost half of people’s income over $180,000.”