Anthony Albanese has broken a major election promise in a bid to win back middle Australia by overhauling the stage three tax cuts to benefit all people earning just under $150,000, while slashing the tax cuts for higher income earners.

In doing so, the prime minister says those on high incomes would “still get a substantial cut”, with people earning $200,000 and more to receive a $4529 cut. This is half the $9075 they were due to receive from July 1 under the tax package as legislated.