The next election promises a showdown on income tax after the Coalition resolved to wave through Labor’s stage three tax cut revamp, but also take a new policy to the polls reinstating benefits for higher earners stripped away by the Albanese government.

After a party room meeting on Tuesday, Opposition Leader Peter Dutton said the Coalition would not roll back the tax cuts for lower-income earners that are the key measure of Labor’s revamped tax package. Instead, it would embellish Labor’s tax cuts.