Dutton plays hardball on tax cuts for high income earners

Peter Switzer
14 November 2024

Just when Peter Dutton could have told his higher income supporters that tax cuts were on the way if he wins the election expected in May, he comes out with “a no more tax cuts for you” stance. While this could be a neat trick to win over disgruntled lower and middle-income votes, it could be that he’s gambling that Australians want a ‘tough’ leader.

Clearly, the Yanks went for that option on November 5 with President Donald Trump back at the White House from January next year. This thought comes to me as a friend explained that she was at a Sydney restaurant a few months ago and former Prime Minister John Howard was dining there.

Apparently, fellow diners respectfully acknowledged him but as he left, they stood up and applauded him! My friend said it was like those Australians remembered his strong leadership that many may miss.

John Howard and Peter Costello followed on from Bob Hawke and Paul Keating, who might have had their dissenters, but both groups took on ‘the hard basket’ stuff. Hawke and Keating took on deregulation, lower protection, compulsory super and even their own union movement, while Howard and Costello confiscated guns and wrestled with the waterfront unions, while giving us a GST and other reforms, that weren’t always popular.

Since then, we’ve seen a succession of unpopular, short-term leaders. Dutton going back to his ‘tough guy’ image on tax cuts, which he’s cultivated over the years, might be a strong move whose time has come.

This is what Sam Maiden on news.com.au tells us about Dutton’s position for those higher income earners who got less tax cuts when the Albanese Government skewed those tax reductions more to lower income Australians:

  1. High-income earners with a salary over $180,000 won’t see their stage 3 tax cuts restored.
  2. Recall that tax cuts for people who earn more than $200,000 a year was halved from $9,075 to $4,529 a year.
  3. Only a better-than-expected budget position is likely to change the would-be PM’s mind on the subject.
  4. His main goal is to see inflation fall, so interest rates will be reduced to help those households feeling the pressure from 13 rate rises.

This comes as The Australian reported three days ago that “primary support for the Coalition has lifted to 40 per cent for the first time since the 2022 election, and Peter Dutton’s net approval now surpasses Anthony Albanese’s…”

The cost of living issue is seen as a big reason for the comeback of Donald Trump. Despite his very unusual ways, it seems a majority of Americans want they see as a strong leader as well. Clearly, the Dutton camp will be happy to portray their leader as the ‘tough’ choice we had to have between now and May next year.

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