The federal government has flipped on its promise to keep stage three tax cuts, however the overhauled scheme will result in lower taxes for the vast majority of Melton and Moorabool residents.
Anyone earning less than about $146,000 per year is set to benefit more from the new tax scheme compared to the original version of the stage three cuts.
According to Profile I.D, just 2.3 per cent of Melton residents and 3.4 per cent of Moorabool residents earn more than $156,000 per year.
The new version of stage three cuts will reduce the 19 per cent tax rate to 16 per cent for incomes between $18,200 and $45,000, reduce the 32.5 per cent tax rate to 30 per cent for incomes between $45,000 and the new $135,000 threshold, increase the threshold at which the 37 per cent tax rate applies from $120,000 to $135,000 and increase the threshold at which the 45 per cent tax rate applies from $180,000 to $190,000.
Prime Minister Anthony Albanese defended the changes at a National Press Club Address on January 25.
“The federal government is being very upfront with the Australian people that when economic circumstances have changed, it is a responsible thing to do to change our policy. And we are changing our policy for the right reasons,” he said.
