Key Senate crossbencher Pauline Hanson says her party will vote for stage 3 tax changes

Pauline Hanson has confirmed One Nation will back Anthony Albanese’s key tax changes, but he is angry at the Prime Minister.

Pauline Hanson will reluctantly vote for Labor’s changes to the stage 3 tax cuts, despite saying Prime Minister Anthony Albanese has ‘lied to the Australian people’.

Senator Hanson said her party would support the changes, but only because too many people would miss out otherwise.

“I have to, because like I said, you don’t crucify all Australians who are struggling and need these tax cuts which is important to the Australian people,” she told Sky News on Wednesday.

“But I want people to remember what Anthony Albanese, the Labor Party and the Greens have done with regards to these tax cuts which were passed in parliament and they were put in place.

“He’s lied to the Australian people and I hope they remember that come the next election.”

Pauline Hanson says One Nation will vote for the government’s tax cut changes. Picture: NCA NewsWire / Martin Ollman

The government plans to introduce its tax changes soon after parliament returns on February 6.

To pass the law, the Prime Minister will either need to secure the support of the Liberals and Peter Dutton – who oppose the changes – or negotiate with the Greens and the crossbench.

Tensions are mounting over Labor’s decision to alter its plans for tax reform to give workers earning less than about $146,000 a bigger tax cut than previously planned.

Some teal independents, including Kate Chaney, have signalled they would support Labor’s policy in favour of broader tax reform, while Greens leader Adam Bandt has threatened to oppose the changes unless Labor provides more assistance for struggling renters.

Under the changes, high-income earners will have the value of their promised tax cut reduced, in some cases by half from $9000 a year to $4500.

‘How can we trust him?’

Earlier on Wednesday, Labor frontbencher Amanda Rishworth was forced to defend herself in a fiery clash.

Liberal senator Jane Hume launched the attack on the Social Services Minister over Labor’s stage 3 tax cuts, declaring she does not trust the government’s claims it won’t add to inflation while demanding “more detail” on the changes.

Senator Hume remained tight-lipped on whether the Coalition would support Labor’s overhaul, accusing the government of being untrustworthy.

“We want to make sure that we understand exactly what the details are of this legislation, exactly how it won’t be inflationary before we make a decision,” she said.

“Let’s face it, the Prime Minister has looked Australians in the eye and he has lied directly. How can we trust him? How can we trust you, Amanda?”

Sunrise host Nat Barr tried to calm things down. Picture: Supplied.

Liberal senator Jane Hume accused the government of being untrustworthy. Picture: Supplied.

Last week, Treasurer Jim Chalmers released a government review on the tax changes that said the shift “will not add to inflationary pressures”.

He also confirmed that he had received assurances from the RBA that the redesign, due to kick in on July 1, would not “alter” future inflation forecasts.

Sunrise host Natalie Barr asked if the Liberal senator thought that the Treasury analysis was incorrect.

“Are you saying the Treasury has got the numbers wrong on this?” Barr questioned.

“We haven’t seen the details, Nat,” Senator Hume snapped back.

The Social Services Minister then asked Senator Hume if she did not trust the Treasury figures.

“I don’t trust you Amanda – I don’t trust your government,” Senator Hume said.

Social Services Minister Amanda Rishworth said the government wasn’t ‘hiding anything’. Picture: Martin Ollman/NCA NewsWire.

Ms Rishworth argued that a full analysis mapping out how the changes would affect people had been made public.

“Firstly, the Treasurer analysis is out there, it is very detailed. We are not hiding anything. But Jane, the fundamental question remains. The details of who will benefit from this change is out there,” she said.

“You voted for this legislation. This is over the top.”

Albo renews attack on Dutton

Anthony Albanese says his tax changes will benefit everyone. Picture: Evan Morgan

Anthony Albanese challenged Mr Dutton to offer up an alternative proposal on Wednesday, labelling the Opposition Leader “the great naysayer.”

“He just says no to everything, doesn’t he?” Mr Albanese told Triple M.

“This is about a tax cut … his job is to be an alternative prime minister and to come up with something, not just saying no to everything. We’re giving a tax cut for everyAustralian, not just some. And for people in his electorate. Almost nine in ten will be better off.”

Deputy Liberal leader Sussan Ley said the opposition would announce its position in “due course” after going through the legislation with a “fine tooth comb”.

“This proposed tax relief is about $15 a week and it doesn’t kick in for five months and it takes 52 weeks of the year to actually get your entire tax cut,” she said.

Jim Chalmers says the Coalition is out of touch. Picture: NCA NewsWire/ Liam Kidston

Treasurer Jim Chalmers said the opposition was “diabolically out of touch” with Middle Australia, citing figures from his office suggesting that up to 85 per cent of voters in Coalition electorates would benefit from the government’s changes.

“I say to Peter Dutton, get out of the way of a tax cut for the early educators and steel workers and nurses and truckies of this country,” Dr Chalmers said.

“You can’t be for Middle Australia and against Labor’s bigger tax cuts for Middle Australia.

“They have to choose.”

Independent MP Zoe Daniel said a recent survey from her electorate, which drew more than 2000 responses, found that three-quarters of Goldstein voters supported the change.

“If that’s a leading indicator of how I will represent my electorate you can take from that what you will,” she told Sky News.

“Labor’s stage 3.1 tax cuts will increase inequality. The Greens will fight for more for low and middle-income earners,” Mr Bandt said.