Chalmers retreats into corner with little hope of escape

Shadow Treasurer Jim Chalmers in Brisbane.

Jim Chalmers is backing himself into a corner over personal income tax cuts, from which he will soon find it difficult to escape.

As opposition Treasury spokesman, his language is direct and laden with intent. He is opposed to supporting the government’s third stage of reform, which involves tax relief to workers further up the income ladder.

Most of his colleagues are as well. In principle. And this is the important distinction.

At the first shadow cabinet meeting following the election, a consensus was reached on Labor’s ideological position — all believed the third stage was not something they could support — but a position on whether as an opposition, Labor would oppose them was not.

Anthony Albanese has called a shadow Cabinet meeting for next week.

It became clear very quickly that serious division existed within senior Labor ranks over the ­politics of starting a term in ­opposition, opposing tax cuts. As Graham Richardson said, if you start with saying no to tax cuts, what could Labor say yes to.

There are now two clearly ­defined camps in the Labor caucus: the pragmatists and the ideologues. On this issue, Anthony Albanese is among the former.

The Labor leader has been deliberate in his language by not closing the door on anything.

But Chalmers and a cabal of shadow cabinet members including the previous leadership group appear intent on fighting the legacy wars.

Having a Treasury spokesman at odds with the leader over tax is not a good way to start a three-year term in Opposition.

Albanese has wisely called a snap shadow cabinet meeting for Monday to sort it out, amid growing momentum on the frontbench and the caucus to allow the tax cuts to go through and have the fight later.