Why Australians are turning against Anthony Albanese over this four-word phrase
Australians struggling with the cost of living have criticised Anthony Albanese after he claimed the new tax cuts would be ‘good enough’ during a visit to a popular restaurant.
The Prime Minister visited Sweet Magic, an Indian sweet factory in Melbourne’s west, on Sunday to approve stage three tax cuts that come into effect on Monday.
Australians earning more than $45,000 will pay less tax as the 37 per cent tax bracket has been abolished.
The change means that low- and middle-income earners earning between $45,001 and $200,000 will pay taxes at a marginal rate of 30 percent.
Mr Albanese later enriched the visit with a post on X, redoubling his commitment to providing much-needed cost-of-living relief to Australian families.
“Just like the desserts here at Sweet Magic, our tax cuts are going to be a positive thing,” he captioned the photos.
‘Reducing the cost of living for every taxpayer, while reducing inflationary pressure.’
But the post left a sour taste in the mouths of hundreds of angry Australians who expressed their outrage at the comments.
Many have been financially worse off for some time.
“Twelve months late. Welcome to your minority government, Mr Albanese,” one commentator fumed.
Prime Minister Anthony Albanese (pictured center) has been criticized for promoting the government’s tax cuts while visiting an Indian sweet shop in Melbourne on Sunday
Another added: ‘My electricity costs went up by $2,000 last year, while costs for everything else went up by 10 percent.’
A third wrote: ‘Tax cuts that benefit the rich much more? Meanwhile, underfunded schools and hospitals struggle to deliver services.”
Other cost-of-living measures coming into effect include the $300 energy rebate announced by the finance minister in the budget and a pay increase for low-income workers.
The prime minister denied the policy would overstimulate the economy and said the changes would help reduce inflation.
“That’s our goal here, to make sure that we overcome the short-term challenges that are putting pressure on families,” Mr. Albanese said.
“But we also want to make sure that economic conditions are good, and that’s why we’ve produced those budget surpluses, which are putting downward pressure on inflation.”
He said the Sweet Magic factory was an appropriate place to discuss the government’s economic plans, “because our goal is to find the right balance.”
“The ideal time to bring down inflation and at the same time reduce the cost of living,” he said.
‘Tomorrow will be a big day: 2.6 million people on benefits will get a pay rise, and 13.6 million Australian taxpayers will get a tax cut.’
Hundreds of Australians who responded to the social media post were unimpressed by Mr Albanese’s comments, with many saying they had been in a worse financial position for some time (stock photo)
The third phase of tax cuts comes after the federal government sensationally reversed the policies of the former Liberal government in 2019.
The 30 percent tax rate is a reduction from the 32.5 percent rate that applied under the original policy.
Australians earning $45,000 will save $804 in the renewed tax cuts, while those earning more than $200,000 will now get just $4,546 back instead of $9,075.
Fears that the RBA would raise interest rates from 4.35 percent, the highest level since late 2020, rose after the CPI indicator for the month of May reached 4 percent.
Finance Minister Jim Chalmers said he expected inflation to remain under control despite the May and March quarter figures of 3.6 percent, above the RBA’s target of 2-3 percent.
The Australian Bureau of Statistics will release its key June quarter figures on July 31, just days before the RBA’s next board meeting on August 6.
RBA Governor Michele Bullock has consistently said the RBA would raise rates again to bring inflation under control if necessary.
The opposition went on the attack on Sunday, with senior frontbencher Michaelia Cash saying the government’s package would do nothing to help Australians.
“When we get back to the real world, when Australians wake up today, they are going to be struggling as a result of the policies of this government,” she told Sky News.
Shadow Chancellor of the Exchequer Angus Taylor blamed the government for inflation.
“The Albanian Labor government has failed utterly to tackle the source of Australia’s cost of living crisis: inflation,” Taylor said in a statement.
‘We are in a deep-seated crisis in the cost of living, and there is no light at the end of the tunnel under Labor.
Mr Chalmers acknowledged that many households were “under pressure” due to higher costs of living and interest rates.
“We are confident, but not complacent, that we can meet this inflation challenge,” Mr Chalmers said.
He warned that Australians should not expect inflation to subside on its own.
‘But our role is to try to make people’s lives a little bit easier.
The Prime Minister said the tax cuts will “hit the sweet spot” in a social media post (pictured) uploaded to X on Sunday
“That’s why the tax cuts, the energy bill reductions, the wage increases, the cheaper medicines, the paid parental leave, that’s what it’s all about.”
Meanwhile, all federal politicians will receive a pay rise on Monday, following the decision of the independent arbitrator, the Remuneration Court.
Mr Albanese will get a $20,543 pay rise, bringing his annual salary to $607,500, while Deputy Prime Minister Richard Marles will get a $16,197 pay rise to $478,983.
Opposition Leader Peter Dutton will receive a $14,617 pay increase, bringing his annual salary to $432,250.