Essential Report
Effectiveness of higher income earners tax cuts at stimulating the economy
Q. The federal government is considering bringing forward tax cuts currently planned for 2022 which will give higher income earners much bigger tax cuts than those on lower incomes.
Which of these options do you most support?
| Total | Gender | Age Group | Federal Voting Intention | |||||||
| Male | Female | 18-34 | 35-54 | 55+ | Labor | Liberal + National | Greens | TOTAL: Other | ||
| The government should bring forward these tax cuts to this year | 33% | 34% | 31% | 33% | 41% | 24% | 28% | 40% | 26% | 29% |
| The government should stick to the existing timetable of 2022 | 29% | 31% | 27% | 40% | 25% | 24% | 29% | 31% | 28% | 26% |
| The government should scrap these tax cuts and spend the money on other priorities | 38% | 35% | 42% | 27% | 34% | 52% | 43% | 29% | 46% | 45% |
| Base (n) | 1,081 | 539 | 542 | 338 | 374 | 369 | 298 | 460 | 115 | 104 |
| Total | Household Income | |||
| TOTAL: Lower Income
(Up to $51,999 per year) |
TOTAL: Mid Income ($52,000-$103,999 per year) | TOTAL: Higher Income
(More than $104,000 per year) |
||
| The government should bring forward these tax cuts to this year | 33% | 25% | 29% | 46% |
| The government should stick to the existing timetable of 2022 | 29% | 24% | 33% | 27% |
| The government should scrap these tax cuts and spend the money on other priorities | 38% | 50% | 37% | 27% |
| Base (n) | 1,081 | 359 | 318 | 317 |
- 33% would support a decision to fast-track tax cuts for high income earners from 2022 to 2020. 29% think the cuts should keep to the existing timetable of 2022, while 38% think they should be scrapped.
- Fast-tracking the tax cuts has greatest support among those with a high household income (46%), while only 25% of those in a household with a lower income, and 29% of people in a mid-income household.
Effectiveness of higher income earners tax cuts at stimulating the economy
Q. Thinking about tax cuts which benefit higher income earners, which of the following statements is closer to your views?
| Total | Gender | Age Group | Federal Voting Intention | |||||||
| Male | Female | 18-34 | 35-54 | 55+ | Labor | Liberal + National | Greens | TOTAL: Other | ||
| Tax cuts for higher income earners are very effective at stimulating the economy because people will spend the additional money | 21% | 24% | 18% | 23% | 28% | 13% | 17% | 27% | 12% | 20% |
| Tax cuts for higher income earners are only moderately effective at stimulating the economy because only some of the additional money will be spent | 41% | 41% | 40% | 52% | 38% | 33% | 36% | 45% | 45% | 38% |
| Tax cuts for higher income earners are not effective at stimulating the economy because people will save and not spend any additional money they receive | 38% | 35% | 42% | 25% | 34% | 54% | 47% | 28% | 43% | 42% |
| Base (n) | 1,081 | 539 | 542 | 338 | 374 | 369 | 298 | 460 | 115 | 104 |
| Total | Household Income | |||
| TOTAL: Lower Income
(Up to $51,999 per year) |
TOTAL: Mid Income ($52,000-$103,999 per year) | TOTAL: Higher Income
(More than $104,000 per year) |
||
| Tax cuts for higher income earners are very effective at stimulating the economy because people will spend the additional money | 21% | 18% | 24% | 23% |
| Tax cuts for higher income earners are only moderately effective at stimulating the economy because only some of the additional money will be spent | 41% | 34% | 39% | 49% |
| Tax cuts for higher income earners are not effective at stimulating the economy because people will save and not spend any additional money they receive | 38% | 48% | 37% | 27% |
| Base (n) | 1,081 | 359 | 318 | 317 |
- One in five people (21%) believe tax cuts for higher income earners are very effective at stimulating the economy. 41% think they are only moderately effective at stimulating the economy and 38% believe they are not effective.
- Even among living in household with an annual income of over $100k, just 23% think these tax cuts would be very effective at stimulating the economy, while 49% say they would be moderately effective and 27% say they would not be effective
Personal tax cuts
Q. What is the lowest amount of personal tax cut that would make a difference to you and your family?
| Total | Vote Labor | Vote Lib/Nat | Vote Greens | Vote other | ||
| Less than $15 per week | 10% | 14% | 7% | 14% | 9% | |
| At least $15 per week | 10% | 9% | 13% | 12% | 11% | |
| At least $25 per week | 18% | 21% | 21% | 13% | 17% | |
| At least $35 per week | 12% | 12% | 16% | 12% | 11% | |
| More than $35 per week | 22% | 22% | 18% | 20% | 32% | |
| Don’t know | 27% | 22% | 26% | 29% | 20% |
34% say that they would require $35 or more per week in personal tax cuts to make a difference. Only 20% say that a tax cut of $15 would make a difference – while a tax cut of $25 per week would make a difference to 38%.
48% of those earning $1,000-1,500 per week said a tax cut of $25 per week would make a difference compared to 36% of those earning more than $1,500.
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