Malcolm Turnbull laments Labor's changes to stage 3 tax cuts
The former prime minister, who introduced the stage 3 tax cuts, says the Albanese government has removed the 'big reform' of the package.
Former Liberal prime minister Malcolm Turnbull has criticised the Albanese government's decision to overhaul the stage 3 tax cuts by keeping the 37% tax bracket, as Treasurer Jim Chalmers slammed the door shut on Labor ever adopting the Coalition-led policy.
In his first public comments on Labor's changes, Turnbull told Capital Brief the government's move to retain the 37% bracket removes the "big reform" of his tax cut package and creates more disincentives for Australians to earn higher wages.
“If you want less of something, tax it," Turnbull said.
"We shouldn’t kid ourselves - tax acts as a disincentive, it’s a brake on economic activity, but it’s necessary. So you’ve got to try and design tax systems so that they are neutral in their application in the way they operate vis-a-vis the economy.
"Too much of our tax base is on income. We prioritise capital over savings and assets in our tax system and it’s very hard for young people trying to get ahead.”
