New analysis reveals rural and regional communities will get the least from the Stage 3 income tax cuts which overwhelming flow to inner-city high-income earners, while metropolitan capital city seats stand to receive the lion’s share of benefits. 

The research conducted by the Australia Institute found the electorate of Parkes is in the bottom 15% of electorates - ranked 128 out of 151 in order proportion of population that will receive benefits from the stage 3 cuts. 

"Those on less than $45,000 well get nothing from the stage 3 tax cuts. Almost half of all taxpayers in the Parkes will get nothing from Stage 3" an Australia Institute spokesperson told the Western Plains App. 

Stage three would abolish the 37% marginal tax bracket completely and lowers the 32.5% marginal tax rate to 30%.

It would also raise the threshold for the 45% marginal tax rate, meaning everyone earning between $45,000 and $200,000 will pay the same 30% marginal tax rate 

"The stage 3 tax cuts mainly go to high income earners," the spokesperson said.

"With half of the tax cut over the next 10 years going to people who earn more than $180,000 just 1.5% of taxpayers in the Parkes earn more than $180,000 per year.

"The national average for taxpayers earning more than $180,000 is 3.5%, while inner city Sydney electorates that get the most from Stage 3 have about 15% of taxpayers earning more than $180,000 per year" the spokesperson said. 

According to the analysis, Of the top 20 federal electorates expected to reap the biggest benefits from stage 3 tax cuts half are in Sydney and a quarter are in Melbourne. None are in regional Australia. 

Image: Wikipedia 

The changes to the tax rate were introduced by the former Coalition government and have already passed parliament with Labor's support. Before and after last year's election Labor said they would implement the tax cuts as legislated. The cuts will come into place in July 2024. 

"In the lead up to the Federal budget the Treasurer has said that they are very constrained in what they can spend, declaring that they can’t even fund good ideas. This is in major part because next year they are going to hand out a $17.7 billion tax cut to high income earners," the Australia Institute spokesperson said. 

The spokesperson said that it was surprising that the National Party supported the Stage 3 tax cut when their electorates will get the least from these tax cuts as "this will further widen the gap between the city and the bush". 

A fortnight ago a report by the Grattan Insitute noted that the stage-three income tax cuts will cost the budget about $20bn a year from mid 2024, rising to $31bn by 2030. It recommended a "reasonable compromise" would be to proceed with most of stage three but retain the 37% tax bracket. 

The Greens and some from the Senate crossbench are calling for the cuts to be revised. 

Labor's finance minister Katy Gallagher has recently affirmed on ABC TV's Insiders program that the Government is committed to maintaining the tax cuts. 

Federal Member for Parkes Mark Coulton was unavailable to comment.