<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The federal government has been urged to slash income tax in a bold proposal that would see 14.7 million working </span><a href="https://www.9news.com.au/national" rel="" target="_blank" title="Australians "><span>Australians</span></a><span> with an extra $1643 in their pockets each year.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Teal independent MP Allegra Spender used an address to the National Press Club today to reveal a costed white paper of a plan to cut personal income </span><a href="https://www.9news.com.au/tax" rel="" target="_blank" title="tax "><span>tax</span></a><span> rates by 2.5 per cent.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The lowest tax rate would be reduced from 16 cents on the dollar to 13 cents.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/federal-politics-new-nationals-leader/3e705dea-b553-47e3-9fad-9fe32d90d84b" rel="" target="_blank" title=""><strong><span>Matt Canavan elected new Nationals leader</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>With the 2.5 per cent tax cut, a worker earning $100,000, which Spender said was slightly more than the median wage, would pay $1643 less in tax.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Under the proposal, workers would pay $28 billion less in personal income in the first year of operation and almost $130 billion less over the first four years. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Spender said the measure was budget neutral and would be paid for by four changes: </span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/allegra-spenders-bold-tax-plan-that-would-leave-every-australian-1643-richer/2c38a57d-dd09-48e5-b280-f34089829adf" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ol><li><span>Reduce the capital gains tax discount from 50 per cent to 30 per cent </span></li><li><span>Reform negative gearing so losses are offset against investment income rather than wages</span></li><li><span>Set a minimum tax rate of 27.5 cents to the dollar on investment income when the individual does not have a labour income</span></li><li><span>Align superannuation earnings thresholds more closely with income tax thresholds</span></li></ol></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Every dollar raised from reducing investment concessions is returned to working Australians through income tax cuts," she said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/naplan-technical-issue-nation-wide-students-unable-to-sit-exam/de1a264a-ea5d-471c-8fa0-b0e6cc1cc32a" rel="" target="_blank" title=""><strong><span>Tests paused, students escorted from exam halls amid widespread NAPLAN issue</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Spender said her proposal would rebalance the tax system so that the youngest workers are not carrying the heaviest burden of the tax system.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>According to her estimates, a young worker who earns about $100,000 in wages will pay $23,000 in tax.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But someone who made the same amount and distributed it through a family trust and split it with a spouse would only pay $13,000 in tax. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>A property owner who made the same on capital gains would only pay about $7000 in tax, and a retiree on $1.7 million of superannuation would pay no tax at all.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Same income. Four entirely different tax bills," Spender said. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/us-israel-attack-iran-airlines-qantas-air-india-and-air-new-zealand-raise-fare-prices-due-to-surging-jet-fuel-costs/3f574ad4-c3b0-4cf7-bdd8-2972ac0d8c1d" rel="" target="_blank" title=""><strong><span>Qantas hikes fares due to Iran war's impact on jet fuel prices</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Spender said major reform was needed now to fix the broken tax system before the intergenerational inequality worsens.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We are on train tracks, and we can see where they head, not a cliff, not a sudden disaster, just a slow arrival at a country where your parents' balance sheet starts to matter more than your own ambition, where people don't have the children or grandchildren that they want because of the financial pressures," she said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We can see where we're headed. We do have time to switch the destination, but only if we act now."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>There is speculation the federal government is looking to reform the capital gains tax discount and negative gearing - two policies that critics say have worsened housing affordability - in the upcoming budget.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/panicked-buyers-empty-shelves-to-stockpile-jerry-cans-as-fuel-prices-surge/75f156f4-b974-418f-9f17-f7ac550f3051" rel="" target="_blank" title=""><strong><span>Aussies could face $4400 fine over 'dangerous' jerry can act</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The government has done little to quash those rumours.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/federal-politics-news-superannuation-tax-changes-to-become-law-support-greens/d1c2fa00-7d0e-4719-a39b-f9e3cfb7a487" rel="" target="_blank" title="The Greens have called for the government to follow"><span>The Greens have called for the government to follow</span></a><span> through on what could be the most substantial changes to the tax system in decades.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"This budget is a once-in-a-generation opportunity for ambitious tax reform, and we are opening the door for Labor to walk through," Greens senator Nick McKim said yesterday.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Treasurer Jim Chalmers has repeatedly pointed to the government's desire to address intergenerational inequality.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="_blank"><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>