Abolishing stage-three tax cuts would ‘impact a lot of Aussies’

If the promised stage-three tax cuts due to start in 2024 are abolished, about 2.5 million middle-income Australians will pay thousands in additional tax.

The federal government has floated the prospect of changing the stage-three plans in recent days.

It comes after British Prime Minister Liz Truss announced and then abandoned a proposal for top end tax cuts within just 10 days.

Analysis by The Australian reveals a wage earner on $120,000 a year would be $1875 worst off in 2024-25 if the stage-three cuts are scrapped.

“It seems like everything is on the table to change now,” senior financial planner at Rising Tide Financial Services, Matt Hale, said.

“I think a lot has changed in the world and they will utilise that as the piece on why this needs to change, but it will impact a lot of Aussies.”

But the tax cuts haven’t been scrapped yet.

“They haven’t actually told us what’s going to happen, so it’s all hearsay,” Mr Hale said.

Press PLAY below to hear Mr Hale