Government Tax Cuts Will Hit Young Australians The Hardest

The government has decided to give tax cuts to the top 20 per cent of income earners. Funnily enough, there aren't many young people earning over $80,000 a year.

It's gonna be a pretty sweet deal for people in higher income brackets. Junkee estimates that the cuts will cost the country $4 billion in tax revenue.

According to Fairfax, there's no indication that people earning less than $80,000 can expect any tax relief from Treasurer Scott Morrison's cuts. There will, however, be a company tax cut to encourage new investment.

The policy was proposed by Prime Minister Malcolm Turnbull back in May 2016, but has now been officially passed with the support of Labor and One Nation.

Taking statistics from the Australian Taxation Office, Junkee estimates that only seven per cent of people aged between 18-29 will benefit from the latest tax cut. For everyone else in the 93 per cent, look forward to having no tax reductions at all.

Most 18-29 year-olds earn less than $55,000 a year and won't reap much (if any) financial benefit from the new policy.

The Greens' analysis of the policies has found that the cut will help 28 per cent of male taxpayers, but only 13 per cent of females.

The workers least likely to benefit from the "targeted personal income tax relief" are kitchenhands, checkout operators, childcare workers and waiters.

According to The Australia Institute, the (sad) reality of tax concessions is that we only see benefits going to small proportions of the population.

"There is nothing equitable about retaining expensive tax concessions that deliver a fortune to wealthy members of certain generations and virtually nothing to younger generations," said Ben Oquist, Executive Director of The Australia Institute.

Safe to say it's been a tumultuous week in politics for the generational debate. (There was that whole, "millennials can't afford housing because they spend too much money on smashed avocado" thing.)

.@oz_f when you can't afford to start your own business pic.twitter.com/cLCOLWu9bu

— Scott Limbrick (@ScottLimbrick) October 18, 2016

Biggest take-away from this week? According to the boomers: glorious, delicious, buttery avocados are our demise.

Definitely not student loans, negative gearing and tax cuts which don't even apply to us.

Heaps cool?

Photo: iStock