Sharp divisions have emerged inside the Albanese government over the future of the stage three tax cuts as Treasurer Jim Chalmers builds a case to pare them back as early as when he delivers his first budget later this month.

While Dr Chalmers refused repeatedly on Tuesday to rule out amending the tax cuts because of what he says is a deteriorating global outlook and a need to build “fiscal buffers”, some of his colleagues warned of the consequences of what would be an egregious broken election promise.