Anthony Albanese accused of ‘sneaky’ word games over Stage 3 tax cuts
The Opposition has called the PM’s language around Stage 3 tax cuts “sneaky” and urged him to categorically rule them in or out. It comes as Hansard records paint a picture of what Labor’s mood toward the policy has been in the past.
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Anthony Albanese accused of “sneaky” word games for a second week over a major tax cut he promised to give Australians.
The Prime Minister was grilled again yesterday over whether he would pass on the Stage 3 tax cuts in the middle of this year, telling radio in Adelaide: “Well, tax cuts will happen in July”.
He was then asked if the cuts would be the same amount he committed to before the election – stage three of the Coalition-designed reforms, giving a tax break to all Australians earning over $45,000 and up to $9000 in relief for those earning $200,000 or more.
First he responded, “We’re committed to that”. He then went on to say “Well, we haven’t changed our position.”
But when The Daily Telegraph asked the Prime Minister to clarify if this meant he would pass on the tax cuts in full, his office did not clarify, instead referring to his comments made on radio.
Mr Albanese was slammed last week for repeating the line: “Our position has not changed”.
Now the Coalition says Labor must categorically rule out watering down the stage three commitment.
“Every day Anthony Albanese repeats the phrase ‘Our plans haven’t changed’ is another day Labor refuses to rule out raising your income tax,” deputy Liberal leader Sussan Ley said.
“It is an utter disgrace that Anthony Albanese continues to hide behind sneaky words when middle Australia is just trying to keep its head above the water.”
Political messaging expert Natalie McKenna said the Prime Minister must explain his tax plan to earn trust with the public.
“To use the line ‘our position has not changed’ and not go further to explain is concerning and to instil trust the PM may have to explain further,” she said.
“Albanese has used the same line as the treasurer which is ‘our position has not changed’. The opposition is concerned that this is political speak and the promise of tax cuts may not happen.”
Hansard records reveal the now private criticism of the reforms with Labor sources saying many in the party still do not approve of them.
In December 2022, even after the party had committed to the cuts it took to the election, it was reported Water Minister Tanya Plibersek told a constituent she would scrap them if she could.
In 2020, now Treasurer Jim Chalmers described them as the “least responsible, least affordable, least fair”.
In 2019, now NDIS Minister Bill Shorten said it was a “ticking time bomb” that was not “fair or responsible” while the same year now Finance Minister Katy Gallagher said she was “worried” about them.
The year prior, current Energy Minister Chris Bowen described them as: “They are expensive, they are unfunded and they are unfair. They undermine the progressivity of our tax system and we will not vote for them.”
On Wednesday a spokesman for Mr Bowen said: “Minister Bowen fully supports the government’s position to implement the Stage 3 tax cuts in July.”
The third tranche of tax cuts, which has already been legislated, will eliminate the 37 per cent marginal tax rate and change the 32.5 per cent rate to 30 per cent.
The 30 per cent rate would then apply to everyone earning between $45,000 and $200,000 with those earning higher getting a marginal rate of 45 per cent.
The changes passed parliament in 2019 as part of a combined bill which included the stage one and stage two tax cuts designed to support lower income earners.
The earlier stages have been implemented, with Stage 3 due from July 1, if the government goes ahead with it.
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