Anglicare Australia has called on the Federal Government to stop its planned tax cuts for high income earners.
The calls follow the release of A Costly Choice, a report showing that Australia already loses billions of dollars each year on tax breaks and concessions that benefit people on the highest incomes.
“When the Tax Cuts were passed, we were told they would help average Australians. Our analysis shows that’s not true,” said Anglicare Australia Executive Director Kasy Chambers.
“Instead the tax cuts will go to people on the very highest incomes. The top 20 percent of income earners will take up 80 percent of the cost.
“The bottom 20 percent will get exactly nothing.
“That comes on top of a tax system that’s already unfair. Our research shows that Australia already spends $72 billion each year on tax benefits for the top 20 percent of income earners. That includes concessions and discounts for properties, investment homes, superannuation, and trusts.
“These tax cuts would add another $14 billion to that number.
“Instead of helping people doing it tough in the midst of a historic cost-of-living crisis, the tax cuts will make Australia more unequal and more unfair.
“We’ve already seen that changing the system can be tough. That’s why the Government should act now and stop these changes before they start.
“Failing to act would be a costly choice for all Australians.”
A Costly Choice shows that:
- The cost of concessions for properties, investment homes, superannuation, and trusts has spiralled to $128.26 billion.
- Much of that cost, $72.38 billion, will go to the wealthiest 20% of Australians.
- Just $4.2 billion (3%) will go to the bottom 20% of income earners.
- Another $17.7 billion will be spent on the next round of tax cuts.
- $14.1 billion of that cost (80%) will go to the wealthiest 20%. None will go to the bottom 20%.