The Albanese government’s move to overhaul the stage three tax cuts could see it punished by high earning mining workers across several seats in the crucial battleground state of Western Australia at the next federal election.

WA Labor insiders say Prime Minister Anthony Albanese’s shake-up of the tax thresholds – after long promises no changes to the legislated cuts – could reignite a class war in the state caused by then leader Bill Shorten’s franking credit policy in the 2019 election.