Peter Dutton slams Treasurer Jim Chalmers over ‘Robin Hood’ tax plan

Peter Dutton has slammed Treasurer Jim Chalmers’ “Robin Hood” act on tax cuts accusing him of robbing from the rich to give to the poor.

Peter Dutton has slammed Treasurer Jim Chalmers’ “Robin Hood” act on tax cuts accusing him of robbing from the rich to give to the poor and warning changes to negative gearing on investment properties could be next.

The Liberal Party is yet to resolve its position on the revamped tax cuts, which are forecast to cost almost a third of a trillion dollars ($313 billion) over the next decade.

But Mr Dutton has urged Australians to brace for further policy changes.

Speaking on 2GB, Mr Dutton accused Treasurer Jim Chalmers of “this cute form of words around negative gearing and dividends and the family home.”

“All of that now – I think people can reasonably say they are worried that changes are coming,” Mr Dutton said.

“If they come out and say that we are going to cap negative gearing or abolish negative gearing or change capital gains arrangements all they will do is kill confidence in the economy.

“And the rental stock that they want available – investors will just leave and they will go into shares or other investments. And if it is retrospective then people will have to unwind arrangements and sell properties because they won’t be able to afford the rental property or rental properties that they’ve got.”

Peter Dutton has slammed Treasurer Jim Chalmers’ ‘Robin Hood’ act on tax cuts accusing him of robbing from the rich to give to the poor and warning changes to negative gearing taxes on investment properties could be next.

The average worker will pay $21,635 less tax over the next decade under Anthony Albanese’s revamped tax package.

In a speech delivered today, the Treasurer said the approach does more to reduce bracket creep for more taxpayers compared to the old stage three.

“Every taxpayer gets a tax cut, and 84 percent of Australians get a bigger tax cut to help with sustained and persistent cost of living pressures,‘’ he said.

“Bracket creep hurts low and middle income earners the most, as they experience the fastest growth in their average tax rate as their incomes increase.

“Our plan returns bracket creep for all taxpayers and does more to reduce the impact on those most burdened by it.

“As a result, the average taxpayer will pay $21,635 less of their income in tax over the next decade.”

It came after Liberal MP Bridget Archer urged her party not to “stand in the way” of Labor’s bigger tax cuts.

But the outspoken Tasmanian MP has warned the Prime Minister’s broken promise also suggests “a lack of integrity” and that he should have been more honest with voters that he was considering the change.

Parliament resumes in Canberra next week and the divided Coalition is preparing to thrash out a position on the tax cuts which must be legislated.

The original tax cuts promised by Scott Morrison and Anthony Albanese at the last election are already legislated.

Prime Minister Anthony Albanese. Picture: NCA NewsWire/Tertius Pickard

That means the Prime Minister must return to parliament to have his new package approved.

Two Liberal MPs – Bridget Archer and Karen Andrews – have told news.com.au they do not believe the Liberal Party should block the tax cuts on principle.

Some frontbenchers think the Liberals should vote against the changes if amendments to restore tax cuts to high income earners fail.

“I don’t think that we should stand in the way of the proposed changes,” Tasmanian Liberal MP Bridget Archer said. “But I do think there is that issue of a broken promise.

“I think that is important because you know, even a week ago the Prime Minister was saying ‘no, no plans to change it or whatever’.

“Whereas I think maybe we’ve got to get to the point where you can say, ‘Look, we’re considering that because the circumstances have changed’. That would have been an honest response. I think that the issue of honesty and integrity is important.”

Bridget Archer said she will not oppose the new tax cuts. Picture: Martin Ollman

Ms Archer said government also needed to address bracket creep given that Labor’s changes are set to collect $28 billion in more tax than would otherwise have been collected if the 37 cent tax rate was abolished under the original plan.

“They do also need to look at that issue of bracket creep, as well. We can’t just sort of keep kicking that down the road,” she said.

“I think we’ll have to wait until next week, and obviously the (Liberal) party room will have a discussion about what might be the coalition’s formal position going forward.

“My view is I wouldn’t be seeking to stand in the way of the changes. Notwithstanding that I don’t think you can overlook the broken promises or lack of integrity.”

Queensland Liberal MP Karen Andrews said it was clear voters were “crying out” for cost of living relief.

“The very clear message I am getting is that people are desperate for cost of living relief,” she said.

“People are seeing the changes as a positive thing for them. But for those people who will miss out (such as higher income earners), we need to do something for them.

“It’s actually the prices in the supermarket. People have come to terms with the increases in rent and mortgages but they’ve had to trim the budget so hard.”

The Prime Minister must secure the support of the Liberals and Peter Dutton or rely on the Greens and the crossbench to get the votes he needs in the Senate.

The Greens want the Prime Minister to go harder. They want high income earners who already earn the most – and pay the most tax – to pay more.

The tax cuts are set to benefit low and middle income workers.

“Rents have gone up by about $100 a week under Labor’s housing and rental crisis and mortgages almost $200 a week. People suffering through Labor’s housing and rental crisis are being offered scraps, while Labor’s giving the wealthy money they don’t need,” Greens leader Adam Bandt said.

Mr Dutton outlined some of his thinking this week in a speech where he noted that under Labor’s tax changes, Australians earning between $135,000 and $200,000 will pay a top tax rate.

“It’s an attack on aspiration,” he said. “For so many Australians, the Government’s rewriting of stage three will hinder aspiration, crush confidence, and obliterate opportunity.

“In retaining tax brackets which were to be abolished, of course the Government has been quite smart because they will take an additional $28 billion in tax from Australians over the next decade.”

The Prime Minister has defended his backflip over the Stage 3 tax cuts stressing that while the changes will deliver a smaller tax cut to high income earners the vast majority of workers are winners.

“And Australians can trust me to be prepared to make difficult decisions, not the easy decisions. That is the priority that I have, putting people before politics,” he said.