Australians ‘will pay more tax’ under Labor’s stage three changes due to ‘bracket creep’

Sky News Business Editor Ross Greenwood has criticised the Albanese government’s changes to the stage three tax cuts as Australians “will pay more tax” due to “bracket creep”.

The prime minister unveiled the government’s new tax plan – after dumping the much-promised stage three tax cuts – in favour of directed assistance for low and middle-income earners.

“To me, it is not just about the broken promise, but it is about the aspirational impact of it,” Mr Greenwood told Sky News host Peta Credlin.

“One thing I can tell you is even though short-term this has no impact on the budget, over the long term, over 10 years, what was expected to cost the economy $363 billion will now cost $28 billion more because, ultimately, long-term, Australians will pay more tax as a result of this policy.

“This is something that the prime minister did not advertise today, and the reason why is because of bracket creep – because if you have more tax brackets in there, you’ve added another one back in there, guess what, the people end up paying more tax back to the government.”

Видео Australians ‘will pay more tax’ under Labor’s stage three changes due to ‘bracket creep’ канала Sky News Australia