Stage 3

The Stage 3 tax cuts are our top this week, with the Treasurer Jim Chalmers demonstrating his significant skill as a kite flyer with the government now reportedly considering amending the cuts. The third stage of the tax cuts, first announced by Treasurer Scott Morrison in 2018, abolish the 37% tax rate and reduce the 32.5% rate to 30% while increasing the threshold for the 45% rate from $180,000 to $200,000. They cost a bomb – more than $200b over a decade, but that cost was known when Labor supported the tax cuts in opposition. So what’s changed?