While a lot of the political commentary is fixated on Labor's broken promise, will its backflip make the tax system better? On that, there's a lot less argument.

ANU economist Ben Phillips ran the government’s proposed stage 3 tweaks through his PolicyMod simulator to weigh up the winners and losers.

He finds about 6.2 million households will benefit from the Albanese government’s changes, while just 1.1 million households will lose out compared to the tax laws passed under the Coalition.

The government’s gamble is that nearly six-to-one winners to losers presents pretty good odds for the widespread financial benefits to outweigh the cost of a broken promise.

  • UnfortunateDoorHinge
    6·
    11 months ago

    Agreed. To most people, they’ve improved the cuts so that more people will get a cut. I would’ve got like $400, now I’m getting $1,400 off. I don’t see a problem in the government going “yeah you did want it, but it was pretty shit tbh so we made it better for you.”