Income tax cuts for Australian individuals earning between $52,000 and $80,000 have this week been passed by the federal parliament, despite strongly stated opposition by the Australian Democrats and the Green Party.
A 47-11 vote in the Senate secured passage for the Tax Laws Amendment (Personal Income Tax Reduction) Bill 2004, which will increase the personal income tax thresholds for the 42% and 47% brackets at the beginning of the next financial year.
Democrat leader Andrew Bartlett reportedly slammed the tax cutting bill, arguing that it had been "rushed through without being scrutinised properly".
Western Australian Democrat Andrew Murray meanwhile suggested that just 24% of taxpayers would benefit from the proposals contained in the new legislation.
However, speaking on behalf of the Treasurer in the Senate, Rod Kemp announced that over the coming four years, more than 80% of taxpayers would remain in or below the 30% tax bracket. The AAP quoted him as observing that:
"The personal tax cuts in this bill continue the government's commitment to ongoing structural reform. They increase the reward for those that wish to work overtime, seek promotion or acquire skills, and they strengthen the international competitiveness of the tax system."
