What are the stage 3 tax cuts? | Video Lab | ABC News In-depth

$97,000 is average????????!!!!! BS!!!!!!

I am so glad I left nursing last year because that industry was already struggling without adequate resources, I couldn't imagine what it is going to look like with even less funding. They were already cutting the physician wage over the years and many Doctors are questioning if the job is worth the risk for the pay, I don't blame them. The stress of Nursing is not worth the lack of resources and low pay.

I’ve heard this conversation somewhere before. Ah yes. Of course. Shrek.

Shrek: For your information, there's a lot more to Tax Cuts than people think.
Donkey: Example?
Shrek: Example... uh... Tax Cuts are like onions!
[holds up an onion, which Donkey sniffs]
Donkey: They stink?
Shrek: Yes... No!
Donkey: Oh, they make you cry?
Shrek: No!
Donkey: Oh, you leave 'em out in the sun, they get all brown, start sproutin' little white hairs...
Shrek: [peels an onion] NO! Layers. Onions have layers. Tax Cuts have layers... You get it? We both have layers.
[walks off]

Donkey: Oh, you both have LAYERS. Oh. You know, not everybody like onions. CAKE! Everybody loves cake! Cakes have layers!
Shrek: I don't care what everyone likes! Tax Cuts are not like cakes.
Donkey: You know what ELSE everybody likes? Laminations! Have you ever met a person, you say, "Let's get some Laminations," they say, "Hell no, I don't like no Laminations."? Laminations are delicious!
Shrek: NO! You dense, irritating, miniature beast of burden! Tax Cuts are like onions! End of story! Bye-bye! See ya later.
Donkey: Laminations may be the most delicious thing on the whole damn planet!

Promises are made to be broken to look after the people first rather than the rich greedy politicians and law makers.

Greetings, our Prime Minister embodies both intellect and courage, deftly navigating the complexities of the current landscape. Australians are grappling with the pressing issue of the cost of living, and the quest for relief is paramount. Adjusting tax cuts to favor the majority emerges as a prudent solution.Amidst our dynamic circumstances, it's crucial to recognize the fluid nature of promises and adapt our approach accordingly. Rather than placing blame on our PM, who is undeniably an Australian hero, let's collectively appreciate the efforts in steering our nation through challenges.For those enjoying incomes exceeding 200k, now is the time to acknowledge your privileges – a stable roof, food security, and financial comfort. Expressing gratitude and extending a helping hand fosters a sense of community. Let's foster fairness, adaptability, and a united front as we navigate the intricacies of our nation.

I have one solid reason to vote for Labour every time and that is they have changed the migration system and allowed well deserving candidates the opportunity to settled in Australia.
Compared to Scott Morrison his was party just used to temporary residents for their benefits and never thought of helping them. So until n unless Labour isnt making huge blunders which would cost in future for my kids, Im sticking with them.

The 45k - 65k earners need a new bracket

Just watched the 9 News morning show analysis and I am not kidding, they said "People earning $200,000 a year have it harder than people earning $150,000 per year". I am not kidding. This country man, what the hell.

I'm on 165k as an engineer. Mature age student, and worked my ass off to get where I am today. My wife is part time as we have 3 kids under 5. Even with modest mortgage it is survival at the moment. I understand that the higher earners mathematically benefit more. So what? I worked my ass off and deserve it.

Absolute joke to cut these tax changes. The middle and lower classes are the ones that completely f*cked the economy during covid so why are they getting rewarded for that by getting more "help" to combat cost of living?

They (currently we) should be paying back the billions of free handouts dumped into the economy for the next 20 years. Milking job-keeper payments, working from home at 30-50% efficiency and spending their handouts on stupid things like collectibles, speculative stocks and gimmicks off amazon. I'm a small business owner and have been working my arse off to grow my business in anticipation of being able to pay myself $200,000 (the amount where i'd be taxed equally in income tax versus corporate tax on profit) at the turn of the financial year and to start saving aggressively for my own home. Now there's far less incentive to take out any more money and actually reward myself for providing well paying jobs to over 30 employees.

Same goes for anyone working smart and hard in this world. What's the point in trying your hardest and furthering your career and wealth over and above average if you constantly have to support the average Australian who does way less than they could be doing whilst complaining about cost of living and how everything they want (not need) isn't their god given right?

Are people saying that it is a bad thing if the higher income earners save more money? They are paying more tax than lower income earners so with these tax cuts they will naturally save more too.

Taxation is theft, abolish taxes and the State.

Utter disgrace giving the low in come of $135 a year when 2 baskets at coles cost $100 how can one live.This is to all you sheep out there vote with your eyes closed.What is so lucky about Australia when people are living hand to mouth and every left or right turn you take you need to take your wallet out and say tooooo expensive to travel whit-in Australia that’s why people travel overseas.
Issue more drivers licence to the people who can’t drive and another rego fee add to the government and a money spin, corrupt

Economic investigator Frank G Melbourne Australia is still watching this very informative content cheers Frank 😊

We pay way way way too much tax!!!

On what basis are the stage 3 tax cuts controversial? They were legislated about 5 years ago with the support of both labor and the liberals. By constantly questioning these tax cuts, the ABC gives the impression that they are campaigning against them.

Its sickening to see why my tax dollars are going to one sided news ABC reporting. I would pay more tax just to see ABC gone. Stage 1 and 2 are already passed with stage 3 to follow as legislated. Poor examples, comparison and not really projecting how much high wage earners are paying tax in their lifetime paying off high student debts the income esp. in major cities just getting by with young families with single income. Shameful reporting and still licking wounds from the referendum fail

How bout the the government spend less, & live off what you get $!$$
Just like pensioners have to, & stop taxing the crap out of us & stop overspending.
Corruption at its best & giving nothing back to the people, it's years of bad management by Labor, Liberal & the Greens that put us in this position in the first place.

Government always have been and always will be greedy

Increase the tax allowance to 24000 dollars

Could just increase tax free threshold and eve try one will be better off, especially those earning the least. Ideally, income tax wouldn’t exist - it is the worst tax if you want to encourage productivity and hard work. We tax tobacco to discourage smoking, taxing people for working only discourages productive activity.

This video is so provocative.. instead of showing the tax cuts only, put some context. For instance 200k earner will be paying tax more than the barista earns. And the Barista doesnt even pay that much in tax.

Changing the topic, this is why negative gearing is so popular because of the bracket creep and hence one of the bjggest reason why we find ourselves in the housing situation.

Other countries around the world, already have tax hitting at higher amounts.

Ultimately if we had less punshing tax brackets and index the brackets to CPI, I dont think having a investment property is as attractive as it is today.


Outlets like this definitely try to divide and anger people with an omission of information (half truths) to paint a picture and a story that is far from the truth.

Very unfair I think you forget to tell that we are waiting from last 5 years for this last stage cut (without zero benefit from last 5 years) and all other segments got their cuts, now why you are raising this debate?

There’s a reason u r a low income earner. Maybe u should be asking how I can increase productivity so I can move up on the income scale, isn’t that what rba want?

Ppl on min wage will get more subsidies from the government over time. It’s the middle income earners who foots the bill.

Australia is over reliant on personal tax, why would people want to work harder if they know they are getting taxed closed to 50%? How do you increase Thé productivity this way ? The best way forward is increase the spending tax or gst and make sure that covers everything, not only some things like it is now and also lower personal tax rates at the same time.

The Tax brackets particularly the 45% tax is ridiculous! If you are on the high income bracket, you pay more tax, more for childcare, more for medicare levy more more more everywhere and are literally left with nothing! As if being on a high income is a criminal offence! Looks like its the responsibility of high income earners to support the lower income earners in Aus!

Flat 30% tax. That way, a pay rise is actually a pay rise

Asking your boss for a payraise, you mean getting let go?

why we are not applying higher taxes as you earn higher and maintain a ratio? Banks are digital, and shopping is digital to control earning/spending.

Thanks for sharing how tax brackets work, but one equation you failed to even show is the amount of tax each individual currently pays, your reporting only focused on tax savings. How about a true balanced approached to journalistic report on this topic.

But they've already done stage 1 and 2 to give tax cuts to the lower brackets....

.With inflation running at a four-decade high, a Recession is now the ‘most likely outcome for the economy. How can I grow my portfolio to outpace inflation and maintain a successful long-term strategy? I have been reading of investors making about $250k profit in this current crashing market, and I need ideas on how to achieve similar profits.

to show a fair comparison you should also have shown how much tax in $ each person will pay. the fact is the top 10% of income earners pay multiple times the amount of tax paid by lower income earners. they pay most of the taxes collected thats why the tax saving is higher.

This is a fraud. You also must look at who is consuming Government offerings. The code change will entice people to do more than simply pour coffee for a living and seek a better career.

Median wage is much lower 60k a year, or $28 per hour

@abc you need to use figures for the MEDIAN wage rather than average.

Pretty deceitful to express income tax savings as in raw numbers considering the lower income people by definition would pay less tax. A more honest person would have done the analysis comparing the reduction as a percentage from previous years' tax bill at each income level. But i wouldn't expect anything different from the Soviet propaganda machine the abc

How much does a TV presenter in ABC channel earn? The salary is paid directly out of tax payers pockets, just like the beloved politicians. No wonder why you’d be advocating for more tax rather than less.
Also are you saying the teacher prefers not to have $1300 in their pocket to avoid higher earner have $9000?
The lawyer is already paying tax more than what Barista makes in salary. “To be fair” you should’ve shown how much each of these 3 people are already paying.

lets dont forgot GST, fuel exercise, stamp duty on houses and insurance, council rates, medicare levy; more doctors wont bulk bill thus paying a gap, HECS; extra tax on higher education!

So over the next 10 years a high income earner is going to make another 90k, combine this with the fact that high income earners already get bigger pay rises (As someone above 200k, my income has grown over 100k in the past 5 years). High income earners don't need government support, the extra $10k a year isn't going to be as noticeable to me as what it will be to someone earning less.

We need to stop making it easier for rich people to get richer buy taking from poor people, it's like negative gearing it's not helping your parents or grandparents like it's helping the rich, it's been recommended to me as an option to reduce taxes while making more money.

perhaps Brackets' income thresholds should be tied to inflation. //
the real question is what will the non taxed income go toward? buying more foreign made goods? that will lower the GDP.
most tax cuts can not change the GDP because the GDP is mostly from gross wages. tax cuts do not change the gross wages only the net pay, maybe

You should’ve used a politician as an example for top tier tax bracket instead of a barrister. That way the public will realise that politicians are giving themselves the best bang for their buck 🤫

The higher tax bracket contribute more in tax than the barista even earns.

I'd rather see the tax break go to the teacher than the barista, who could easily change their circumstances by learning a trade.

Does a barista stay a barista? The law student can be a barista, only later to become the barrister. The people in certain low paying jobs isn't static, it’s more complicated. Further the barrister will use tax strategies to lower income, so just focusing on tax brackets isn't a representative nor comprehensive analysis for direct comparisons ... it's just general/surface level stuff.

The rest of us better learn some actual facts about the mutual respect required for a functioning democratic system of governance.
So think about the video and the pure contempt for equity that an actual Representative Democracy requires.

Thanks for the Educational advice.

Stage 3 cuts are nothing more than a form of indexation for bracket creep. In Australia to 10% of highest income earners pay 50% of the income tax. Our top marginal rate of income tax is 47% (inclusive of the Medicare Levy), one of the highest in the world and it kicks in relatively early, so some relief is not unreasonable. The best would have been indexing of the bracket creep but as said, the governments love it. It's a taxation by stealth.

The politicians say otherwise but taxes are wealth distribution but not from the rich to the poor. Cronie capitalism and self-serving government workers and politicians. Some used to buy votes.

See how a temporary financial benefit/gift like the tax credit is thought of as an entitlement when it expires?