‘What happened?’ Angus Taylor questioned over Coalition’s tax cut backflip

Shadow Treasurer Angus Taylor has been questioned on the Coalition’s tax backflip after Peter Dutton ruled out tax cuts over a fortnight ago.

Shadow Treasurer Angus Taylor has been grilled on the Coalition’s tax backflip after Opposition Leader Peter Dutton announced a one-off $1,200 tax cut for 10 million Aussies on Sunday.

Mr Taylor was questioned about the announcement – which came over two weeks after Mr Dutton ruled out offering income tax cuts – during his heated debate with Treasurer Jim Chalmers on ABC’s 7.30 report on Monday night.

“I would love to introduce tax reform and tax cuts, but the Labor Party has racked up what we now see in the Budget papers of about $1.2 trillion of debt,’’ Mr Dutton told 7.30 host Sarah Ferguson on March 27.

“We won’t be able to provide tax cuts during this campaign.”

Questioning Mr Taylor on the U-turn on Monday night, Ferguson asked: “What happened to the discipline of the budget can’t afford that?”

“That discussion was about personal income tax reforms,” Mr Taylor responded.

“Do you think that’s how the public hears it? When they say there will be no tax cuts during the campaign?” Ferguson pressed.

Sarah Ferguson questioned Angus Taylor on the backflip on Monday night. Picture: ABC

Mr Taylor defended the announcement. Picture: ABC

“You show a grab like, that the public will hear it as it’s shown,” Mr Taylor said, referring to a clip of Mr Dutton declaring the party won’t be able to provide tax cuts last month.

The Shadow Treasurer went on to argue Aussies need short-term “temporary” and “meaningful” cost-of-living relief.

“We need to rebuild the government budget, which as I have just said has gone off a cliff under Jim Chalmers. Because basically they threw out the rule book. Now we do that by re-establishing the fiscal rules, making sure we grow the economy faster than spending, making sure wasteful spending is not committed to, $100 billion under Labor that we’ve said is not appropriate,” he said.

“We can get ourselves into a position where those longer term tax reforms can be achieved. In the short term, we need to make sure that household buffers are rebuilt, that’s why we’re offering the $1,200 tax offset. It’s why we are offering 25 cents a litre off the fuel.”

Peter Dutton previously said “we won’t be able to provide tax cuts during this campaign”. Picture: ABC

Hitting back, Mr Chalmers accused the Coalition of making policy to legislate higher income taxes.

“There’s an important point to be made. What Angus and Peter Dutton are offering is not ongoing help with the cost of living. He just admitted that. That’s a really key difference in the election. The thing that Angus hasn’t told your viewers is that his policy is to legislate higher income taxes permanently on the Australian people.

“So the difference here in the election is – immediate and ongoing help with the cost of living, higher wages and lower taxes under Labor. Lower wages and higher taxes and secret cuts to pay for nuclear reactors,” he said gestuing to Mr Taylor.

The Coalition’s tax cut would see low and middle-income earners with taxable incomes between $48,000 and $104,000, receive up to $1,200 in tax relief when they lodge their tax return for the upcoming financial year.

The tax cut will cover about 85 per cent of Australian workers. However, just like the fuel excise cut, the measure will be temporary and will not be offered on an ongoing basis.

Those earning over $144,000 will also miss out.

Mr Taylor argued Aussies need short-term cost-of-living reprieve. Picture: ABC

“Australians are hurting – and Anthony Albanese isn’t listening,” Mr Dutton said when annoucing the tax cut.

“The Coalition is stepping up with a plan that provides real help.

“Families are getting smashed under the Albanese Government, and they need help now.

“A Coalition government will first provide help to families by cutting fuel by 25 cents a litre – a saving of about $1,500 a year for a two car family. And then by giving back up to $2,400 per family while we clean up Labor’s mess. Labor’s 70 cents a day is a bandaid on a bullet wound.

“Our Cost of Living Tax Offset will put more money back into the pockets of millions of Australians at a time when they’re being crushed by skyrocketing grocery bills, rent, mortgage repayments and insurance costs.”

Labor announced a $17 billion tax cut last month.

The “modest” tax cuts that will start at $5 a week from July, 2026 before rising to $10 a week the following year.

Originally published as ‘What happened?’ Angus Taylor questioned over Coalition’s tax cut backflip