Australian Workers Earning Over $150,000 Annually Are Struggling Under Inflation, Bill Shorten Claims

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The government’s strategy to implement stage three tax cuts is beginning to show cracks as a senior minister alleges that Australians making $150,000 a year are struggling.

Bill Shorten, the minister of government services and former leader of Labor, who vigorously opposed the previous administration’s income tax cuts, claimed that high earners who took home more than $100,000 annually suffered from the effects of inflation.

He made these remarks while defending Anthony Albanese and his administration’s controversial industrial relations measures, which aim to raise wages.

Australia’s treasurer, Jim Chalmers, is debating whether to change the tax cuts, which will help workers making more than $120,000, when Mr Shorten spoke in support of the government’s labour reforms, which later passed through the senate late on the night of December 1.

“What’s motivated this (IR) legislation has been to redress the imbalance in the Australian economy, where the share of national income going to pay-as-you-go tax earners has fallen,” Mr Shorten told ABC in an interview last December 1.

“And there is an economic benefit to the whole economy. When people have a little bit more money to spend and when you’re on less than, you know, $100,000 or $120,000, $150,000 a year, you spend nearly everything you get.

“What this does is provides economic activity.”

According to critics, forcing firms to pay more outstanding wages will lead to them raising prices, worsening the cost-of-living crisis.

The past administration’s tax cuts, scheduled to take effect in July 2024 and eliminate the 37.5 per cent marginal tax band, will also reduce the 32.5 per cent rate to 30 per cent.

All individuals making between $45,000 and $200,000 will pay the same 30 per cent tax rate, primarily benefiting those making above $120,000 annually.

Despite Scott Morrison’s legislation being unpopular with some caucus members, Prime Minister Anthony Albanese promised not to amend it before the 2022 election.

And while Australia struggles to combat inflation, Dr Chalmers has said he may change the package.

High earners are affected by rising inflation and may need some help to cope with these higher costs.

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