Rich Man’s World: Government tax plan massively benefits high-income men

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New research from the Australia Institute reveals that the bulk of the federal government’s tax plan will overwhelmingly benefit high-income older men, despite the government’s attempt to highlight what young women stand to gain.

Stage 3 tax cuts due to take effect in 2024-25 will see men benefit from twice the tax cut of women, with more than half going to the top 10% of people better paid – mostly men.

Main findings:

  • The benefits of the government’s Stage 3 tax cuts will overwhelmingly benefit those with the highest incomes, most of whom are men.
  • The Stage 3 tax cuts, worth $184 billion, will see women get 33% of the tax cut, with men getting 67% of the tax cut.
  • In short, for every dollar of tax reduction that women receive, men receive $2.
  • The top 10% earners receive 50% of the benefits, and nearly three-quarters of the benefits (72%) will go to the top 20%.
  • The 50% of earners will only get 5% of the tax cuts, and the bottom 20% will get nothing at all.

“A rigorous analysis of the government’s tax plan shows Australian women will be hurt by a factor of two to one,” said Matt Grudnoff, senior economist at the Australia Institute.

“Looking for data and claiming that women are better off than men is dishonest at best. We encourage the government to publicly release the data informing their gender claim so that the public can analyze its veracity.

“The bulk of the tax cut, worth $184 billion, will overwhelmingly benefit older, high-income men.

“Our research shows that the idea that young women have the most to gain from legislated tax cuts is absolutely crazy. For every dollar of tax reduction that benefits women, $2 goes to men.

“The Stage 3 tax cuts will only serve to further widen the wealth gap between men and women.

“The good news is that they won’t come into force until July 2024, which leaves plenty of time for the government and parliament to abandon them.”

/Public release. This material from the original organization/authors may be ad hoc in nature, edited for clarity, style and length. The views and opinions expressed are those of the author or authors. See in full here.
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