There has been a lot of howling about the unfairness of the high-income tax cuts proposed in the latest budget by the Liberals.
Indeed, it came to a head during Q&A a couple of weeks ago when a low-income worker asked a fair question about the fairness of the tax cuts.
However, this type of dialogue wrongly accuses the Government of giving tax breaks to millionaires.
Whilst millionaires will certainly benefit, this is not the group that will benefit most from the tax cuts.
A quick look at wage statistics at the ABS (see http://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/6302.0Main%20Features3Nov%202015?opendocument&tabname=Summary&prodno=6302.0&issue=Nov%202015) shows that average private sector wages sit at just under that magic $80,000 annual income (at around $77,000).
However, average public sector wages sit nicely above this figure (at around $84,000).
Also, since a large proportion of the public servants (federal) are in positions around APS6-EL1, this salary bracket sits at around $80k+.
Clearly, the greatest beneficiaries of Malcolm’s tax cuts will be public servants!
Next time we have a public brawl about the fairness of such tax breaks, please please please let’s demonise the right target: public servants, not millionaires.
Canberra’s public sector wages going nowhere, ABS figures show: