Now that the Coalition’s $144bn income tax cuts have passed the federal parliament, it’s worth outlining exactly what people on different incomes will get.
Given the tax cuts were previously described as a “sandwich and milkshake” tax cut (a reference to a 2003 comment by Howard-era minister Amanda Vanstone), here we’ve represented how far the tax cut will go towards a range of goods and services:
This is showing the final outcome of the tax package, that is the combined effect of all measures introduced by 2024-25. Not surprisingly, it shows that those on higher incomes will be positively swimming in shakes and sangers compared to those on lower incomes.
A variety of modelling carried out by different groups has shown that the people to benefit most from the tax cuts overall will be those on higher incomes.
The National Centre for Social and Economic Modelling (Natsem) modelled the impact of the government’s plan, and their figures show tranches two and three of the income tax changes significantly benefit those on higher incomes:
Natsem also carried out a geographic analysis, showing the cuts would flow to wealthier suburbs in the cities.
Households in Sydney’s eastern suburbs, inner harbour and north shore would receive the biggest concentration of the largest tax cuts in New South Wales.
Inner Melbourne suburbs such as Toorak, South Yarra, East Melbourne, and Prahran, and Brighton in the south, would receive the biggest concentration of the largest tax cuts in Victoria.
Finally, if you want to see how the initial tax changes will affect you, try our tax calculator:
