High income earners oppose tax cut plan

Since coming into office, the Labor government has faced pressure to ditch the coalition-initiated stage three tax cuts for high earners, set to come into effect in 2024.

The tax cuts passed parliament in 2018, well before the pandemic hit and critically impacted the economy.

It is estimated the cuts will cost the budget a quarter of a trillion dollars and give the highest income earners an extra $9000 while providing nothing to those on the minimum wage.

The government continues to resist the idea of repealing the planned cuts, hesitant to change their election commitment to keep them.

But The Australia Institute has found more than twice as many people value good economic management over sticking to election promises.

A survey of more than 1400 Australians found twice as many respondents supported repealing the cuts than those who opposed and most understood high income earners would benefit the most if they go ahead.

Australians set to benefit from the cuts are also more likely to oppose them.

Australia Institute executive director Richard Denniss said people surveyed believed when economic circumstances change, economic policy should change too.

"The more Australians learn about Scott Morrison's 2018 stage three tax cuts for high income earners, the more likely they are to oppose proceeding with them in the current economic climate," he said.

"Australians are receptive to having a big, honest conversation about the economy (and) indeed this research shows that conversation is already happening."

Dr Denniss said the issue is unlikely to fade in people's memories and could impact the next federal election.

The research shows Australians want the government to invest in quality essential services rather than give tax cuts to the wealthy.

"The message from voters is clear: this sort of reckless spending must stop," Dr Denniss said.

"More than one third of Australians are still making up their minds about stage three, which indicates the debate is there to be won or lost based on the economic evidence and on what is fair."

Australian Associated Press