‘Word games’: Sunrise host Natalie Barr questions PM’s response to tax cuts

Sunrise host Natalie Barr has called out the prime minister’s response to promised tax cuts, questioning whether he is playing “word games”.

Sunrise host Natalie Barr has called out Anthony Albanese’s response to promised tax cuts, after he pledged the up to $9000 relief “will happen” later this year.

The Prime Minster finally announced the tax cuts will go ahead in July on Adelaide radio on Wednesday after weeks of speculation.

“We have no change to our plans. We, of course, have said that tax relief is really important,’’ Mr Albanese said.

“I mean, that’s one way that you put more money into people’s pockets. And tax cuts are important.”

When asked about the stage-three tax cuts earlier this week, Mr Albanese offered a similar response.

“The government’s position hasn’t changed,” he told ABC radio on Monday.

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

The prime minister said the tax cuts “will happen” in July. Picture: NCA NewsWire/Gaye Gerard

Addressing Mr Albanese’s response on Sunrise on Thursday, Barr asked independent MP Zali Steggall whether the Prime Minister was playing “word games”.

“Do you think he’s playing word games because he doesn’t seem to be just saying ‘Yes?’ Something simple,” questioned Barr.

In response, Ms Steggall said the Prime Minister is currently under pressure from his party room, “where there’s probably dissenting views”.

She added there was a diverse range of views on the tax cuts among her community in Sydney’s northern beaches.

“I did a survey around it and it was a mixed response when it came to keeping them, shelving them or amending them.”

“And so I think [Mr Albanese] is probably having to manage that as well, but as we are now in the rundown to them taking effect, I think it would be very difficult to change them at this time.”

Natalie Barr questioned whether the prime minster was playing ‘word games’. Picture: Sunrise/Channel 7

Zali Steggall said it would be “very difficult” to change the cuts at this time. Picture: Sunrise/Channel 7

The stage three tax cuts will see high income earners on $200,000 receive a whopping $9000 a year cut.

However those earning $45,000 will receive just 43 cents-a-week in tax relief.

Ms Steggall said she was in favour of the cuts, which were legislated under Scott Morrison’s government back in 2019.

“People are counting on them and expecting them, especially with the cost-of-living crisis,” she said.

“So I think it would be foolish and difficult for the Prime Minister to change them.”

However, she pointed out they were a “bit contentious”.

“It’s a percentage cut. So people on a high income pay more tax and as a result will get a greater cut or reduction as a result of it.”

Ms Steggall also noted some people are concerned the stage three tax cuts could have an inflationary impact on the economy

“But I think at the moment with cost-of-living crisis, I think these will be welcome to most households.”

Under the changes, a worker on $200,000 will only pay $51,592 a year in tax instead of $60,667.

In comparison, Aussies who are earning $50,000 will pay $6,592 a year in tax instead of $6,717, receiving a tax cut of $125 a year.

The Parliamentary Budget Office estimated the tax cuts to cost around $69 billion over the forward estimates period (to 2026-27), and around $313 billion over the medium-term projection period.