Anthony Albanese’s leadership will be ‘over’ if he abandons tax cuts, Peter Dutton says

Anthony Albanese’s hold on the leadership could be at risk if he walks away from a huge tax change, Peter Dutton warns.

Anthony Albanese has been warned he’s risking his position at the top if he goes against stage three tax cuts.

Opposition Leader Peter Dutton put the Prime Minister on notice for his cagey attitude towards the cuts in recent weeks, accusing him of “trying to play both sides of the street”.

“Australians have seen this movie before and they don’t reward leaders who go to an election with an iron-clad guarantee and then knowingly break it,” he told 2GB.

Mr Dutton slammed the Prime Minister for his recent performance. Picture: NCA NewsWire / Dylan Coker

Mr Albanese has been repeatedly asked to give an iron clad guarantee on the cuts. Photo by: NCA Newswire/ Gaye Gerard

“If the Prime Minister breaks that promise, I think his leadership is done.

“I think (former Labor leader) Bill Shorten would be licking his chops if he thought Mr Albanese would walk away from it.”

Mr Albanese has been under pressure in recent weeks to clarify his position on the tax cuts after repeatedly refusing to give an iron-clad promise they would be rolled out as planned on July 1.

Instead, the Prime Minister has consistently responded “our position has not changed”.

On Wednesday, Mr Albanese slightly tweaked his language, confirming they would go ahead.

The stage three tax cuts will abolish the 37 per cent bracket that applies to income between $120,000 and $180,000.

It will also apply a 30 per cent rate to all earnings between $45,000 and $200,000.

The tax cuts will be rolled out from July 1. Picture: NCA NewsWire / Nicholas Eagar

The biggest benefit of the cuts would flow to Australians who earn the most and pay the most tax.

The cuts were legislated by the previous Coalition government. At the time, Mr Albanese argued against it in opposition but ultimately blinked and waved them through.

He later vowed to deliver the tax cuts while on the election campaign.

But Mr Dutton is unconvinced.

“(Mr Albanese) says 1000 words but he doesn’t say anything at all,” the Liberal leader said.

“He’s trying to play again to the element in his party room, on the phone to him saying ‘you’ve got to ditch these tax cuts’ and the other half of the party room saying ‘you’ve got to honour your election commitment’.

Lobby group ACOSS urged the government to pull the pin on the cuts. Picture: NCA NewsWire / Morgan Sette

“It’s another example of him trying to play both sides of the street. It’s the weakest form of leadership you can imagine.

It comes as the Australian Council of Social Service penned a letter to Mr Albanese and Treasurer Jim Chalmers, urging them to either reform or repeal the cuts.

The upcoming May budget is the final chance for the government to tinker with stage three before July 1.

ACOSS wants, at a minimum, the 37 per cent tax bracket for incomes between $120,000 and $180,000 and increase the 45 per cent threshold from $180,000 to $200,000.

The lobby group says it would maintain a cut of $37 a week for workers earning up to $120,000 while also saving $9bn over the next financial year.

But ultimately it wants to see the policy on the cutting room floor and replaced by programs that limit spiralling rents and cost-of-living relief.

“If the government is serious about tackling inflation and delivering targeted relief, it should scrap stage three and also raise the rate of income support payments including Jobseeker from $54 to at least $78 a day,” chief executive Cassandra Goldie said.