👉 Background: The Stage 3 tax cuts have been in motion since 2018. These tax cuts were going to remove the 37% tax bracket for those earning between $120,000 - $180,000 and reduce the 32.5% tax bracket to 30%.

👉 What happened: Now, the Labor Government has pulled a plot twist by announcing changes to the Stage 3 tax cuts. Rather than tax cuts that would mainly benefit people earning above $120,000, the government has revised the tax cuts to help every Aussie taxpayer.

👉 What else: Despite its commitment to maintain the Stage 3 tax cuts, the government wants to give higher tax cuts to lower income earners, and support Aussies with high cost of living.

What's the key learning?

💡Unlike many government legislation, changing tax brackets are more than just numbers on a policy document, they're a direct line to the wallets of every Australian.

💡As inflation has worsened, the pressure has been building on the government to change stage three tax cuts.

💡The amended Stage Three tax cuts mean:

• An Australian earning $50,000 per year will be $804 better off
• An Australian earning $145,000 per year will be $104 better off
• An Australian earning $200,000 per year will actually be $4.5k worse off

But these new changes don’t have the green light just yet, they will need to go through parliament to be legislated.

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