The Coalition’s income tax cuts will help the rich more, but in a decade everyone pays more anyway

Does the Coalition’s tax plan favour high earners over those with lower incomes?

Depending whom you listen to, the tax cuts, unveiled in last month’s federal budget, lead to either a flatter, more regressive tax system under which low-income earners will be even worse off relative to high earners, or the opposite, with a progressive outcome. It can’t be both.

While there are tax cuts proposed from July this year, the most substantial cuts are planned for 2022-23 and then 2024-25. As this is several years away, it becomes tricky to analyse their likely impact.

The

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