Kate Chaney calls on Labor government to scrap Stage 3 tax cuts (13 Oct 22)
Kate Chaney, the independent MP for Curtin, has made a bold call to the Labor government to reconsider the Stage 3 tax cuts legislated by the previous government, slated to take effect in 2024. These tax cuts would set a uniform tax rate of 30% for incomes between $45,000 and $200,000, disproportionately benefiting higher earners. Despite Labor's election promise to uphold these cuts, recent comments from Treasurer Jim Chalmers suggest a potential reevaluation.
Chaney's stance is informed by a comprehensive assessment of what she believes is in the nation's best interest, particularly in light of Australia's current economic challenges. She highlights the country's doubled debt since pre-COVID times and the embedded structural deficit, emphasising the absence of significant economic reform over the past decade. With looming financial pressures in aged care and the National Disability Insurance Scheme (NDIS), Chaney questions the prudence of implementing the Stage 3 tax cuts at this juncture.
Representing a constituency where only 12% would significantly benefit from these cuts, Chaney argues that the broader national interest does not align with the tax reduction plan. She advocates for a more holistic tax system review to ensure long-term sustainability, especially considering the ageing population's implications.
Chaney acknowledges the government's predicament, given its prior commitment to these tax cuts while in opposition. However, she urges a shift towards longer-term policy thinking, reflecting her electorate's desire for forward-looking governance. Her call for a comprehensive tax reform over immediate tax cuts for the relatively affluent underscores a critical perspective on fiscal responsibility and social equity.
This move by Chaney not only challenges the current government's fiscal policies but also highlights the growing influence of independent MPs in shaping national debate on key economic issues. Her advocacy for reconsideration of the Stage 3 tax cuts represents a significant intervention in Australia's ongoing discourse on tax reform and economic management.