Australia Institute releases analysis of stage three tax cuts

Analysis by the think tank shows constituents in Lyons are likely to receive a $39 millon benefit from the $254 billion in tax cuts over 10 years, while those in Braddon will receive a $44 million benefit.

Residents in Bass will receive a $47 million benefit.

Of the 20 electorates that get the least benefit from the tax cuts, 12 or 60 per cent per cent are rural seats.

Conversely, of the 20 electorate to benefit the most, 17 are inner metropolitian seats and 75 per cent of them are in Melbourne and Sydney.

Australia Institute senior economist Matt Grudnoff said millionares would get a $10,000 handout from the proposed tax cuts while battlers in Tasmania would get "chump change".

"Tasmania will get the least from what are effectively tax cuts for rich people on the mainland," he said.

"That's a problem for people struggling with cost of living and for a federal budget which the government says lacks revenue for essential services in health, education, aged care and the NDIS."

Tasmanian Greens senator Nick McKim said the government had turned its back on Tasmania by proceeding with the tax cuts.

"They are a direct transfer of wealth from people in Tasmania to the millionaires of North Sydney," he said.

"The stage three tax cuts are nothing less than a betrayal of the Tasmanian people who voted for change last year.

"It is not too late to change course."

The planned tax cuts were legislated under the previous Coalition government.

The previous two stages of tax cuts were passed in 2018 and 2019.

The third stage will abolish the 37 per cent tax bracket and lower the 32.5 per cent tax bracket to 30 per cent.

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