Judo Bank Chief Economic Advisor Warren Hogan has slammed the Labor government for looking at stage-three tax cuts from a “political point of view” rather than “what’s needed for the economy”.
The Albanese government is considering changes to the stage-three tax cuts, including lifting the tax-free threshold while retaining the highest tax bracket at $180,000 instead of lifting it to $200,000.
A joint press release from the Business Council of Australia, Australian Industry Group, Minerals Council and the Australian Chamber of Commerce and Industry urged the government to stick with the stage-three tax cuts.
‘Business calls on the Government not to break the promise it took to the last federal election just over 18 months ago … To not do so would undeniably dent the Government’s credibility,’ the statement said.
“The reality is, the government is looking at this from a political point of view, rather than what’s needed for the economy,” Mr Hogan told Sky News Australia.
“I think the best thing they can do is nothing – to stay the course and stick to their strategy of keeping the extra revenues, maintaining a sort of discipline around fiscal policy, and hoping the Reserve Bank’s got the job done with a 4.35 per cent cash rate.”