Labor has won its first political battle of the year, with changes to stage three tax cuts passing federal parliament.
The stage three tax cuts were the final step of tax changes legislated by the former Coalition government.
The first two stages focused on changes to lower tax brackets, with the final stage removing a tax bracket and taxing income between $45,000 and $200,000 at a rate of 30 per cent.
The new plan spreads cuts across the existing tax brackets, reducing the 32.5 bracket to 30 per cent, and increasing the thresholds for tax brackets.
As a result, Australians earning less than $150,000 will get a larger tax cut, whilst those on higher incomes will see a more modest cut than was previously planned.
Labor vowed it wouldn't make changes to the tax cuts ahead of the 2022 election, but broke that promise earlier this year.
Prime Minister Anthony Albanese says the change in economic circumstances forced them to make changes
