Australia’s Prime Minister, Anthony Albanese, announced plans to consult lawmakers on modifying proposed tax cuts for higher earners, potentially deviating from an election pledge. The proposed changes involve retaining the 37% tax band for incomes between A$120,000 to A$180,000, redirecting savings to middle and low-income groups. Economists express concerns about potential inflationary effects, as the alterations may stimulate spending rather than saving. While aimed at supporting Australians under financial pressure, the move may impact interest rate decisions. The Prime Minister faces political risks with his approval ratings already at lower levels amid rising living costs.
Australian PM Considers Amending Tax Cuts for Higher Earners, Stoking Economic Debate
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