How stage three tax cuts will impact the average Geraldton resident

The average Geraldton resident can expect an extra $900 in the pocket after a Federal Government decision to backflip on an election promise to leave stage three tax cuts untouched.

According to data from the 2021 Census more than 58.3 per cent of Geraldton residents aged over 15 will benefit from the tax cut reforms.

Data shows that only about 16.9 per cent of people in Geraldton earn more than $150,000, the benchmark to be worse off from the reforms, while about 6.8 per cent are under the tax paying threshold and won’t be affected.

The contentious change will benefit low to middle-income workers but slash the amount saved for high income earners by up to $4500.

Wages earned between $18,201 and $45,000 will now be taxed at 16 per cent rather than 19. The next bracket will be split into two with earnings between $45,001 and $135,000 taxed at 30 per cent, and up to $190,000 taxed at 37 per cent.

The original change was to make $45,001 to $200,000 one bracket taxed at 30 per cent, however a 45 per cent tax rate will remain for the top bracket, but the threshold will move from $200,001 to $190,001.

Prime Minister Anthony Albanese told the National Press Club the decision would put middle Australia at the fore.

“If we were to simply proceed with the old plan, promoted before these challenges even existed, it would mean middle Australia missing out on the help that they need and the help that they deserve,” he said.

“For me our responsibility is clear, this is the right decision, not the easy decision.”

Mr Albanese confirmed the week prior that his Government was committed to the originally planned tax cut.

The day before the official announcement the Prime Minster was on the radio where he said “everyone will be getting a tax cut.”

It is unclear what the fallout will be from the decision as financial hardship puts more pressure on households.