Per Capita calls on Opposition and Senate cross bench to #StopStage3

June 11, 2019


MEDIA RELEASE: Per Capita calls on Opposition and Senate cross bench to #StopStage3

Having won the election, the Coalition government will be pushing hard to legislate its tax plan when Parliament sits again in July.

That tax plan comprises three stages: Stage 1 increases the low and middle income tax offset (LMITO) from $530 to $1080 and will come into effect immediately; Stage 2 raises the top threshold of the 19% tax rate from $41,000 to $45,000 and will come into effect in 2022-23; and Stage 3 lowers the 32.5% tax rate to a flat 30% for people earning $45,000 to $200,000 and will come into effect in 2024-5.

Per Capita’s position is that Stages 1 and 2 are necessary to stimulate our stagnant economy and should be passed with immediate effect.

However, Stage 3 is a measure that will massively exacerbate inequality and insecurity in this country. It will give billions in tax cuts to the richest Australians at a time when we are being told that we cannot afford to spend on essential services for the rest of us.

We therefore urge the Opposition and the Senate cross bench to pass two amendments to the bill:

    • To amend Stage 2 so that it comes into effect immediately rather than in 2022-23, to provide a much-needed stimulus for the economy; and
    • To amend the bill to remove Stage 3 and pass only Stages 1 and 2, referring Stage 3 to a Senate Committee Inquiry to determine the impact of Stage 3 on income inequality and on revenue to fund essential services.

The Greens, Centre Alliance, One Nation, Jacqui Lambie and the ALP should join together to defer the passage of Stage 3. Even where Senators disagree with Per Capita’s position or are inclined to support tax cuts for high income earners, they should vote to defer Stage 3 until its impact has been properly measured and until we have a better sense of the state of the economy three years from now.

For more information please contact Emma Dawson at