Anthony Albanese stands firm on stage-three tax cuts

The prime minister says high-income earners in Australia will still receive tax cuts despite acknowledging concerns over wealth inequality.

Anthony Albanese conceded that Australian’s we’re ‘doing it really tough’. Picture: Gaye Gerard/NCA NewsWire.

Anthony Albanese has again waved off calls to scrap Labor’s stage-three tax cuts after being accused of “taking people’s money” by the opposition.

Facing calls to abolish the cuts, which are due to come into force on July 1, the prime minister reaffirmed his government wouldn’t budge on scaling back the looming bracket increase but acknowledged that wealth inequality remained a problem in Australia.

“The government’s position hasn’t changed,” Mr Albanese said on Monday.

“Inequality is an issue and the government has looked at ways in which we can improve that position.

Mr Albanese said income tax relief would help to ease inflationary pressures facing many Australians. Picture: Chris Hyde/Getty Images.

“That’s why measures such as strengthening Medicare, the measures that we have for cheaper childcare - all aimed at improving that position.

“Bear in mind that the stage three tax cuts start at $45,000. $45,000 if that’s your annual income, you are certainly not wealthy.”

The stage three tax cuts will abolish the 37 per cent bracket that applies to income between $120,000 and $180,000.

The Coalition’s legislated reforms will also apply a 30 per cent rate to all earnings between $45,000 and $200,000.

The biggest benefit of the cuts would flow to Australians who earn the most and pay the most tax.

Nationals MP Barnaby Joyce said he wanted Labor to honour its promise to commit to the cuts and demanded the government start “giving money back to the Australian people”.

Barnaby Joyce said the cuts were an ‘easy surplus’. Picture: Martin Ollman/NCA NewsWire.

“This is not the government’s money, it is your money, your effective tax rate has gone up. Therefore, the government is taking more of your money,” Mr Joyce said.

“It is an easy surplus, put the money into the treasury bracket. We need to start giving the money back. If we don’t, it is a swindle - a slow burning swindle on the Australian people.”

The prime minister said he understood that many Australians were doing it tough amid the nation’s ongoing cost-of-living crisis and said Labor would continue to look at a full range of relief measures in its May budget.

He said pushing down inflation remained his top priority for 2024 and flagged a meeting on Monday with former Labor minister Dr Craig Emerson who will lead an independent review into food and grocery prices.

Originally published as Anthony Albanese stands firm on stage-three tax cuts