More than 70 per cent of Broome residents to benefit from stage three tax cut change
The average Broome resident can expect to be more than $1000 better off after the Federal Government’s decision to backflip on an election promise to leave stage three tax cuts untouched.
According to data from the 2021 Census more than 71 per cent of Broome residents aged over 15 will benefit from the tax cut reforms.
Data shows that only around 7.5 per cent of people in Broome earn more than $150,000, the benchmark to be worse off from the reforms, while six per cent are under the tax-paying threshold and won’t be affected.
Those earning the median Broome wage of $56,056 are set to save $1080 on their tax bill.
The changes are a broken election promise by the Albanese Government who vowed to keep the cuts in their original form as legislated in 2019.
The reform will benefit low and middle-income workers but slash the amount saved for high-income earners by up to $4500.
Wages earned between $18,201 and $45,000 will now be taxed at 16 per cent rather than 19.
The reform splits the next bracket into two with a 30 per cent tax rate between $45,001 and $135,000 and 37 per cent up to $190,000.
The original change was to make $45,001 to $200,000 one bracket taxed at 30 per cent.
A 45 per cent tax rate will remain for the top bracket but the threshold will move from $200,001 to $190,001.
Talking at the National Press Club, Prime Minister Anthony Albanese said the decision was an important one.
“If we were to simply proceed with the old plan, promoted before these challenges even existed, it would mean middle Australia missing out on the help that they need and the help that they deserve,” he said.
“For me our responsibility is clear, this is the right decision, not the easy decision.”
Mr Albanese confirmed the week prior that his Government was committed to the originally planned tax cut.
The day before the official announcement the Prime Minster was on the radio where he said “everyone will be getting a tax cut”.
It is unclear what the fallout will be from the decision as financial hardship puts more pressure on households.
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