Jacqui Lambie renews calls for Anthony Albanese to dump ‘greedy’ stage 3 tax cuts

A key crossbencher has renewed her call for a major tax cut that would predominantly benefit the wealthy to be dumped ahead of the budget on May 9.

Anthony Albanese is facing fresh calls to dump a scheduled tax cut for the wealthy, with a key crossbencher claiming the public won’t care if he breaks a promise to keep them.

Jacqui Lambie, who holds a crucial balance of power vote in the Senate, made no secret of her opposition to the tax cuts when asked about them on Tuesday.

“I’ve made it very clear that those stage 3 tax cuts need to be staggered,” she told ABC’s RN.

The tax cuts, due to come into effect from July 1 next year, will abolish the 37 per cent marginal tax rate for those earning more than $120,000.

Jacqui Lambie has again raised concerns about the stage 3 tax cuts. Picture: NCA NewsWire / Gary Ramage

The cuts, which were legislated by the Coalition with Labor’s support, will also cut the 32.5 per cent tax rate to 30 per cent for people earning between $45,000 and $200,000.

Senator Lambie raised concerns that people earning between $120,000 and $130,000 were struggling with rising interest rates.

But the Tasmanian independent said people who were on higher salaries, such as her $217,060 base pay, shouldn’t get a handout.

“People like me do not need a tax cut, I can assure you, so please don’t give me one because I don’t want one and anybody else that’s in the situation that I am shouldn’t be so greedy,” she added.

“You've got to pay it forward. That’s what we need to be doing, and that’s where Australia should be.”

The cost of the legislated cuts has blown out since they were first announced.

Mr Albanese and Treasurer Jim Chalmers have repeatedly shut down changes to the stage 3 tax cuts ahead of the May budget.

“Our position on the tax cuts hasn't changed,” Dr Chalmers routinely says.

Asked if she believed the public would accept Labor reneging on its promise, Senator Lambie said she didn’t “think the public is really going to worry about it too much”.

The cost of the tax cuts has blown out from $11bn to $254bn over the next decade since the policy was announced in 2018 by then-treasurer Scott Morrison.

Senator Lambie said should the government scrap the tax cuts, some of those funds could be redirected to pay for the nuclear-powered submarines Australia acquire under the AUKUS deal at a cost of up to $368bn over the next 30 years.

Finance Minister Katy Gallagher didn’t answer directly when she was asked during question time in the upper house on Tuesday if she could guarantee Labor wouldn’t change the stage 3 tax cuts in the future.

“Our policy on the tax cuts has not changed. That is the position that we’re in,” Senator Gallagher said in response to a question from Nationals frontbencher Bridget McKenzie.

The Senate descended into a row over “transparency” after opposition senators accused Senator Gallagher of failing to answer the question and she responded by saying former Coalition governments had “vandalised” the budget.