Aussies struggling with the cost of living crisis have slammed Anthony Albanese after he claimed the new tax cuts will ‘hit the sweet spot’ during a visit to a popular eatery.
The Prime Minister visited Sweet Magic, an Indian sweet factory in Melbourne‘s west on Sunday to endorse the stage three tax cuts that will come into effect on Monday.
Aussies earning more than $45,000 will pay less tax with the 37 per cent tax bracket abolished.
The change means low and middle-income earners making between $45,001 and $200,000 will pay tax at a marginal rate of 30 per cent.
Mr Albanese later spruiked the visit with a post on X as he doubled down on his commitment to deliver much needed cost of living relief to Aussie families.
‘Just like the desserts here at Sweet Magic, our tax cuts will hit the sweet spot,’ he captioned the photos.
‘Cost of living relief for every taxpayer, while taking pressure off inflation.’
But the post left a sour taste in the mouths of hundreds of furious Aussies who expressed their outrage at the comments.
Many have been financially worse off for some time.
‘Twelve months too late, welcome to your minority government Mr Albanese,’ one commenter fumed.
Prime Minister Anthony Albanese (pictured centre) has been slammed for promoting the government’s tax cuts, while visiting an Indian sweet shop in Melbourne on Sunday
Another added: ‘My electricity went up $2,000 last year, cost of everything else up 10 per cent.’
A third wrote: ‘Tax cuts that benefit the rich a lot more? Meanwhile underfunded schools and hospitals struggle to provide services.’
Other cost of living measures that will come into effect include the $300 energy rebate the treasurer announced in the budget and a pay rise for low income workers.
The Prime Minister denied the policies would overstimulate the economy and said the changes would help reduce inflation.
‘That is our objective here, to make sure that we get through the short-term issues which are there for cost of living pressures on families,’ Mr Albanese said.
‘But we want to make sure, as well, that we get the economic settings right, which is why we have produced those budget surpluses, which does put downward pressure on inflation.’
He said the Sweet Magic factory was an appropriate place to talk about the government’s economic plans ‘because our objective is to hit the sweet spot’.
‘The sweet spot in putting downward pressure on inflation while providing cost of living relief,’ he said.
‘Tomorrow will be a big day – 2.6 million people on award wages will get a wage increase, as well, 13.6 million Australian taxpayers will get a tax cut.’
Hundreds of Aussies who commented on the social media post were left unimpressed by Mr Albanese’s comments, with many saying that have been financially worse of for some time (stock image)
The stage three tax cuts comes after the federal government sensationally backflipped on the policy introduced by the former Liberal government in 2019.
The 30 per cent tax rate is a reduction from 32.5 per cent rate that was in place under the original policy.
Aussies earning incomes of $45,000 will save $804 from the revamped tax cuts while those earning more than $200,000 will now only get back $4,546 instead of $9,075.
Fears that the RBA would raise rates from 4.35 per cent, the highest its been since late 2020, rose after the CPI indicator for the month of May hit 4 per cent.
Treasurer Jim Chalmers said he expected inflation would be tamed, despite the May figure and the March quarter figure of 3.6 per cent – above the RBA’s target of between 2 and 3 per cent.
The Australian Bureau of Statistics will release the important June quarter figures on July 31, just days before the RBA’s next board meeting on August 6.
RBA governor Michele Bullock has said consistently the RBA would raise rates again to bring inflation under control if it had to.
The opposition went on the attack on Sunday, with senior frontbencher Michaelia Cash saying the government’s package would do nothing to help Australians.
‘Back in the real world, when Australians wake up today, they will be doing it tough as a result of the policies of this government,’ she told Sky News.
Shadow Treasurer Angus Taylor laid the blame for inflation at the feet of the government.
‘The Albanese Labor government has completely failed to address the source of Australia’s cost of living crisis – inflation,’ Mr Taylor said in a statement.
‘We are in an entrenched cost of living crisis, with no light at the end of the tunnel under Labor.
Mr Chalmers acknowledged many households were ‘under the pump’ because of higher cost of living pressures and interest rates.
‘We’re confident but not complacent we can get on top of this inflation challenge,’ Mr Chalmers said.
He warned Australians should not expect the easing of inflation to be straightforward.
‘But our role is to try and make life a little bit easier for people.
The Prime Minister said the tax cuts ‘will hit the sweet spot’ in a social media post (pictured) which was uploaded onto X on Sunday
‘That’s why the tax cuts, the energy bill relief, the pay rises, the cheaper medicines, the paid parental leave, that’s what it’s all designed to do.’
Meanwhile, all federal politicians will get a pay rise on Monday following the decision of the independent umpire, the Remuneration Tribunal.
Mr Albanese will receive a $20,543 pay rise, taking his annual salary to $607,500, while Deputy Prime Minister Richard Marles will get a $16,197 increase to $478,983.
Opposition Leader Peter Dutton will receive a pay rise of $14,617, bringing his annual salary up to $432,250.