CANBERRA, June 22 (Xinhua) -- Australia's Prime Minister Malcolm Turnbull believed the country's largest ever personal income tax reform will benefit families most, despite calls from the Opposition that the cuts were irresponsible.
The 144-billion-Australian-dollar (106 billion U.S. dollars) reforms, which were targeted at lower tax brackets, allowed Australian families "to retain more of the money they earn," according to Turnbull.
Under the first stage of the plan, low and middle-income earners will get tax relief of up to 530 Australian dollars (390 US dollars) per year, with benefits for people earning up to 200,000 Australian dollars (147,500 U.S. dollars) to be put in place by 2024-25.
Turnbull described the tax cuts as both "responsible" and "fair", while speaking on Australian television on Friday morning.
"It would get rid of a whole tax bracket, it results in a tax system that is fairer and simpler and encourages and rewards aspiration. I've heard the Labor Party say: 'we can't afford it,' but it is all budgeted for," he said.
The leader of the Opposition, Bill Shorten, criticised the government's lack of foresight and said they focused too heavily on one tax bracket.
"What they have done is put more than AUD$140 billion on the nation's credit card with no plan to pay for it," Shorten said in parliament on Thursday afternoon.
Turnbull said he would look to introduce all of the tax cuts sooner if future budgets permit.
"Government services are better funded now than they ever have been," he said on Friday morning.
The income tax plan was passed by the Australian Senate on Thursday afternoon and will commence from July 1, 2018. Further cuts will gradually be rolled out over the next seven years.
