The stage three income tax cuts will cost the budget $313 billion over the next decade, according to new costings commissioned by the Greens.
That is 23 per cent higher than the previous estimate of $243b, which was not included in the federal budget handed down last week.
The tax cuts are expected to overwhelmingly benefit higher income earners when they come into effect in July 2024.
According to the Parliamentary Budget Office analysis, $157b will flow to workers earning more than $180,000 a year, which represents almost four per cent of people.
Men will also be the big winners from the tax cuts, claiming 65 per cent of the total benefit over the next 10 years.
Greens leader Adam Bandt said the tax cuts would drive Australia towards “US-style inequality”.
“Labor’s stage three tax cuts for the wealthy are a massive black hole, sucking in money that should be spent on services for everyone,” he said.
“How can Labor spend over $30 billion a year on tax cuts for the wealthy, but not $5 billion a year for public housing that the Greens want?”
Greens treasury spokesman Nick McKim said the cuts would dismantle the nation’s progressive tax system.
“It is unconscionable that a PM who got elected on a story of growing up in public housing would so cynically pull the ladder up behind him,” he said.
“The idea of giving $313 billion in tax cuts to the wealthy instead of freezing rents, lifting Centrelink above the poverty line and building public and affordable housing is beyond disgraceful.”
The tax cuts have already been legislated and kick in at $45,000.
The government has said it has not changed its position on the tax cuts.
(Australian Associated Press)