Australian Council of Social Services urges govt to ditch next tax cut phase

The Australian Council of Social Services is calling on the government to jettison stage two of its income tax cuts and instead reinvest those funds into social housing and the aged care sector.

The government has not ruled out bringing forward the second tranche of its income tax cuts in order to boost consumer spending.

The first stage of the income tax cuts has already been handed out, with millions eligible for a tax cut of up to $1,080.

The second stage, which is slated to be implemented from July 2022, cuts taxes for people earning between $90,000 and $120,000, and raises the tax-free threshold on the lowest tax rate.

Australian Council of Social Services CEO Cassandra Goldie told Sky News bringing forward the second tranche of the tax cuts will cost $16 billion.

She said the economy would benefit more from investing in social services.

"With the scale of the unemployment situation we are presented with… we are going to need every dollar spent to guarantee to create jobs," Ms Goldie said.

"We have put forward things like the big investment in social housing, proposal in investing in care services.

"Let’s make sure the dollars the govt invests is guaranteed to either protect people’s incomes who need or protect jobs not 16 billion to people who already have jobs, on higher incomes, most of those dollars would be going to the top ten per cent of income earners."


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From: Sky News Australia

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