Federal parliament will resume on the 2nd of July, with the coalition government aiming to have their proposed tax cuts legislation among the first bills addressed and passed.
The proposed $158 billion plan is broken into three stages. Stage one is worth $15 billion and will more than double the end-of-year rebate for low and middle-income earners, from $530 to $1080. Stage two would begin on the 1st of July, 2022 and will increase the income threshold under which the 32.5 per cent rate applies from $90,000 to $120,000.
Finally, stage three would commence on the 1st of July, 2024 and will apply a 30 per cent tax rate to all incomes between $45,000 and $200,000. It will cost $95 billion, of which an estimated $33 billion would go to people now earning over $180,000.
While Labor agrees tax cuts are needed, it doesn't believe the three stage plan in its entirity is the best option for the economy. Speaking to Sky News, Labor's finance spokeswoman Katy Gallagher says her party will support the first two stages of the plan, but more discussion on stage three is needed.