Inequitable Coalition tax cuts to blow $30b budget hole

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By Leith van Onselen

The Australia Institute (TAI) has released analysis of the Morrison Government’s tax cut package, which reveals that they will make Australia’s tax system far less progressive with benefits flowing overwhelmingly to higher income earners:

The centrepiece of this budget is large income tax cut that builds on the large income tax cuts in the last budget. Together, these cuts represent over $300 billion in lost revenue over 10 years and a radical reshaping of the purpose of income tax. Income tax in Australia has been a progressive tax where those on higher incomes pay a larger proportion of their income in tax. This funded universal services like health and education.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.