In January 2024, Prime Minister Anthony Albanese announced the government would be redesigning the Stage 3 tax to make them fairer, redistributing $84 billion that was destined to go to the highest income earners back to people on low and middle incomes.

• Tax cuts to all taxpaying Australians
• Bigger tax cuts to 85% of workers
• Millions of Australians who would have received no benefit at all from Scott Morrison’s original Stage 3 cuts will now receive one
• 37% tax bracket preserved, protecting the progressive nature of Australia’s income tax system

Many said this policy shift was politically impossible. But in February the Parliament passed the changes with unanimous support from the Greens, independent crossbench MPs and the Coalition.

It was the culmination of five years of Australia Institute research and analysis.

Anthony Albanese’s decision to recast Scott Morrison’s 2018 Stage 3 tax cuts to suit the economy of 2024 is the biggest and most honest piece of tax reform in modern times.

Over five years, the Australia Institute:

• Ran a full page open letter in national newspapers signed by 100+ economists and tax experts, calling for an overhaul of the Stage 3 tax cuts
• Published more than 20 separate research reports that shaped the national tax debate and explained why Scott Morrison’s Stage 3 tax cuts were a poor economic policy
• Held three Revenue Summits at Parliament House, involving respected economists and tax experts like Bernie Fraser, former Governor of the Reserve Bank, former ACCC Chair Rod Sims, Professor Patricia Apps, Professor Miranda Stewart, and ACTU Secretary Sally McManus
• Ran a national TV ad campaign promoting our Stage 3 research
• Secured over 18,000 signatures on our petitions to fix Stage 3