Peta Credlin: Labor government contemplating ditching planned tax cuts

They are tax cuts that have already been legislated, but the Labor government looks as if it is set to ditch planned tax cuts and break one of their major election promises, writes Peta Credlin.

If the government is not thinking of scrapping the 2024 tax cuts it promised to keep, why is the Treasurer using tricky language?

Even on Friday, Jim Chalmers kept reiterating the phrase that “the government’s position has not changed” and I know what that means because he’s not saying it won’t. Especially as he’s got backbenchers wanting him to scrap what they call a tax break for the rich.

Actually, it’s nothing of the sort.

Yes, all high-income earners will benefit from the Morrison government’s stage three tax cuts, but so will vast numbers of low-income earners.

In fact, everyone earning more than $45,000 a year will be better off, thanks to lower marginal rates of tax on all incomes between $45,000 and $200,000 a year.

Could Anthony Albanese and Jim Chalmers back down on a major tax pledge. Picture: NCA NewsWire / Martin Ollman

If they go ahead in full, these tax cuts would leave a teacher earning $70,000 a year, $620 better off; a researcher on $90,000 a year, $1120 better off; and a mechanic on $100,000 a year, $1370 better off.

How can Labor justify taking away these modest benefits from people who aren’t really well-off – especially as it’s sworn again and again not to.

Yet that’s what the Prime Minister and the Treasurer are said to be contemplating this weekend so that the budget can be finalised.

Of course, there’s pressure for extra spending – including from Labor’s rash pre-election commitments on childcare, that will give taxpayer subsidies to households on over $530,000 a year.

But the best way to deal with all this is to restrain new spending and to grow the economy – not undo already legislated tax cuts.

Let’s not miss that point – these tax cuts are law right now, to take effect from July 1, 2024, so as far as a broken promise it doesn’t get much bigger than that.

“There will be no carbon tax under a government I lead” – Julia Gillard never recovered from that breach of faith. Is this Albo’s Gillard moment?

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