Albanese Government ‘hasn’t changed position on stage three tax cuts’

While tax cuts come into force in 2024, there is speculation that the Albanese Government won’t move to scrap cuts for the wealthy.

Anthony Albanese has hinted that he won’t scrap the stage-three tax cuts - however refused to rule it out.

Amid pressure from the Coalition not to backflip on his election commitment, Mr Albanese on Sunday repeatedly said of his government: “Our position hasn’t changed.”

He said that while treasurer Jim Chalmers was going through the budget “line by line” looking for savings, he suggested he wouldn’t make any changes to their tax policy.

“Our position hasn’t changed... I don’t think the public are that engaged, I think some of the media are that engaged in this position,” Mr Albanese said in Perth.

“What Jim Chalmers is doing as treasurer is shaping a budget where he’s made the obvious statement.

“We’ve seen, the fastest, most consistent tightening of monetary policy across the advanced global economies by central banks in decades.

“At that time, fiscal policy should work in concert with that rather than against it.”

The tax cuts, which are due to come into effect in 2024, would create a 30 per cent tax bracket for anyone earning between $45,000 and $200,000.

Mr Albanese said his position hadn’t changed since the election, however he refused the opportunity to rule out making any changes.

“That’s the context in which we’re framing a budget - a budget in which there is a trillion dollars in debt, left by the former government and frankly not enough to show for it,” Mr Albanese said.

“We’re going through line by line to get rid of the waste that’s in the budget.”

Anthony Albanese has refused to rule out winding back the stage three tax cut. Photo: Martin Ollman/Getty Images.

Labor’s Resources Minister Madeleine King reaffirmed her party’s position, backing Mr Chalmers’ comments that it was an election commitment to provide tax cuts to middle-to-high income earners.

“I don’t think the Treasurer is very savvy on this or shaky at all,” Ms King told Sky News on Sunday.

“These stage three tax cuts are legislated.

“What I would say is obviously there’s a conversation going in the community.

“That’s okay to have an open discussion about that tax or any other tax, but right now, this government is not planning anything.”

Resources Minister Madeleine King said stage three tax cuts would go ahead. Picture: NCA NewsWire / Gary Ramage

On Friday, Mr Albanese and Mr Chalmers said they had not dumped Labor’s election commitment but warned that fiscal and monetary policy must be balanced in ­response to global economic downturns and soaring inflation.

Opposition leader Peter Dutton weighed in on the issue, saying it was a pivotal moment that will decide whether the Labor Party loses the nation’s trust.

Opposition leader Peter Dutton said the government will lost the nation’s trust if he doesn’t stick with election commitment. Picture NewsWire / David Clark

“This is not about tax cut, but whether you can trust Anthony Albanese and the Labor Party, and they’ve still got it seems in their back pocket the prospect or option to reverse the key promise they made at the last election,” Mr Dutton told ABC Insiders on Sunday.

“It would be an unforgivable and ridiculous mistake.”

Opposition treasury spokesman Angus Taylor also responded to the government’s comments saying higher taxes were absolutely “in (Labor’s) DNA”.

“Now the key to that is to have a strong economy, have a strong economy, strong incentives for Australia to get out there and have a go to crack and then they pay more tax,” Mr Taylor told Sky News on Sunday.

He said the prime minister had allowed the debate to run for weeks and needed to make a firm commitment.

“We need to see Anthony Albanese ruling out dropping the tax cuts,” he said.

“We’re seeing extraordinary inflationary pressures right now. And we know with inflation, the average Australian pays a higher rate of tax.

“These tax reforms were designed very carefully to make sure there was an incentive for Australians to get out there to have a crack.”

Originally published as Albanese Government ‘hasn’t changed position on stage three tax cuts’