What you said about potential backflip on Labor’s stage 3 tax cuts

Broken promises, bad politics or just taking care of business? Albo’s backflip on stage 3 tax cuts has kickstarted a firestorm. JOIN THE CONVERSATION

Anthony Albanese has ripped up an election promise on tax by slashing cuts promised to more than a million Australians ... and readers aren’t happy.

After repeatedly pledging to deliver the Stage 3 cuts in full, the Prime Minister will on Thursday unveil a total rewrite of the package that leaves any Australian earning $150,000 or above worse off than his original commitment.

Labor will redirect the funds toward low and middle income Australians, with Mr Albanese to plead his case in a speech at the National Press Club declaring the backflip was the “right thing to do”.

Treasurer Jim Chalmers said on Thursday Labor was “putting the people before politics”.

Prime Minister Anthony Albanese says breaking his promise on stage three tax cuts was the right thing to do. Picture: Martin Ollman

The Coalition has vowed to unleash a political firestorm on Labor over the broken promise, as business groups slammed the changes as a tax on aspiration and economists criticised the failure to seriously address bracket creep.

A poll of readers on Wednesday found 81 per cent of the 6859 people who voted would be “less likely to vote for Labor as a result of the broken promise on tax cuts”.

Despite the looming backlash, Labor MPs unanimously endorsed the tax change at a meeting in Canberra on Wednesday, with several attendees describing the mood in the room as “amazing,” “excellent,” “positive” and “full of support for the changes”.

Some nervous MPs asked how Labor would sell the policy to voters, with the response to include a new ad blitz.

Under Labor’s plan the tax rate for incomes between $18,200 and $45,000 would be slashed from 19 per cent to 16 per cent from July 1.

The government would also keep the 37 per cent tax bracket for incomes between $135,001 and $190,000, applying a 45 per cent rate for any higher earnings.

The original stage three plan would have imposed a flat 30 per cent tax rate on all income from $45,000 to $200,000.

Labor’s changes mean a person on $50,000 would get a cut of $929, up from $125.

But workers on $150,000 or above will get a smaller tax break, with someone on $180,000 now to receive $3,729 instead of $6,075, and a person on $200,000 to get $4529 instead of $9075.

Coalition treasury spokesman Angus Taylor said the word of Mr Albanese and Treasurer Jim Chalmers now meant “absolutely nothing”.

Many readers agreed.

Some insisted it was typical Labor to be going against its word; others said common sense prevailed when it came to thinking on the fly.

Many, though, claimed the whole situation was a mess.

Prime Minister Anthony Albanese is poised to break his Stage 3 tax cut promise. Picture: NCA NewsWire

See what you had to say below, cast your vote and join the conversation >>>

WHAT YOU SAID

Common sense

Chris

As Australians we now have a choice.

We can deal with the economic realities the world has provided us post Covid, with high inflation and rising costs all over the world and make economic decisions based upon the current economic climate.

Or we can stick to an economic path that was set in stone in 2019, pre Covid and the trillions of dollars of stimulus that was pumped into the world’s economy by federal governments, while they were paying for us to be forced to stay at home for 3 years.

Paul

We don’t need temporary energy subsidies. We need permanent energy price drops.

andrew

Low income earners received tax breaks in the first two rounds. It’s about time middle income earners received a cut as well

Jim

At the moment, ending the offset, My wife, 2 kids and myself all lost $1500 (we are all hard working) due to ending of the low income offset. This pays directly to the needy millionaires such as Albo’s $9000 tax cut!! Break the promise and give all Australians a tax cut!

Albo out!

Peter2

The issue is not whether the stage 3 tax cuts are good or bad, it is that Anthony Albanese promised time and time again that he was going to implement the stage 3 tax cuts in full and not break an election promise.

So if Anthony Albanese does break his election promise then he should suffer a reputation loss.

Ian

He has forgotten what was promised. Such a liar

FUD

Airbus couldn’t lie straight in bed. More broken promises. The ineptitude of this Govt knows no bounds. One term Airbus for sure.

andrew

I am a lifetime Labor voter. If these cuts go, so does my vote

Just Thinking

If we agree on the meaning of the word “promise”, and that the current government made this promise, the poll in this article allows only 1 truthful answer.

Claudia

Every day I think this government couldn’t get any worse! Who is advising these people??

Coalition treasury spokesman Angus Taylor says Australians can no longer trust the word of Anthony Albanese. Picture: Martin Ollman

This is fair enough

Beth

Flat rate is fairer across the board, higher income earners work just as hard as any other, deserve the same breaks.

John

Airmiles and Blackout have No clue whatsoever about the ruination of our economy because of their clueless ideas. They send their Victorian vountrrparts are rapidly wrecking our industry and our economy.

P

Albo from marketing is just a figurehead, he fires the shots for others, like the Voice radical activists. If we could work out who’s pulling the strings on tax cuts for high income earners, Greens, unions or someone else, we’d have a clearer picture.

What a mess

Daryl

The Liberal mantra. Those on low wages deserve to be poor because they are either lazy, stupid or both.

Quite unfair, as many on low wages work hard, while many on high incomes get it from investments.

The Fred

The poll gives an insight into the earnings of a lot of people here , of course they are for the high earners getting the most relief

Richard

Stop wasting our taxes on Bowen ‘s mad renewable nonsense. Problem solved

Dave

People earning 200k+ a year are already doing it tough and barely scraping by and now this? Absolutely disgusting I feel physically ill

Deluded

Just a shocking gov doing as it pleases not as it should. There time in office needs to come to an end so we can get some normality back in our lives and get rid of this WOKE hand me out culture.