Jim Chalmers rejects union push to axe stage three tax cuts

Jim Chalmers says the government has no intention to go back on a promise it took to the election, as the ACTU calls for an overhaul of economic policy.

Treasurer Jim Chalmers says the government’s position on stage three tax cuts had not changed. Picture: NCA NewsWire / Gary Ramage

Jim Chalmers has rejected a proposal from unions to cancel the planned stage three cuts, affirming the government had no intention to go back on a promise it took to the election.

The Australian Council of Trade Unions has released a series of policy papers ahead of the September jobs and skills summit, calling on the government to instruct the RBA to pursue full employment alongside its inflation target as well as cancel tax cuts, arguing they would only benefit higher-income households and exacerbate inflationary pressures.

Speaking to ABC’s RN Breakfast, the Treasurer said the tax cuts were already legislated and the government’s position had not changed.

“The reason I point out that they’re legislated - and I obviously understand the point that you’re making - is because I think there is a view out there in the community that somehow they need to be legislated between now and coming in 2024,” Dr Chalmers said.

“And the point that I’ve made repeatedly as a reminder to people is that the status quo is that they’re legislated. People do have views about them and I understand that. I engage with people’s views on that all the time, but it’s a fact that they’re legislated.

“It’s a fact that we went to the election saying that we didn’t intend to change them. That remains our position. But we’ve got priorities and tax reform, and they’re focused on multinationals.”

Dr Chalmers told The Australian that “not every idea that’s pitched up will be progressed” at next month’s jobs and skills summit.

As business groups pilloried the ACTU’s proposals, Dr Chalmers said he welcomed ideas from all interested parties but not every suggestion would get taken up.

“Whether it’s business or unions or others, we want participants from all sides to be making suggestions in the lead-up to the summit, and we will bring our own ideas as well,” he said. “We aren’t looking for ­unanimity on every suggestion, we are looking for broad consensus on the ways forward, and that inevitably means not every idea that’s pitched up will be progressed.”

While Dr Chalmers said the government wanted to “genuinely address the economic challenges we face in a collaborative and constructive way”, the Opposition Leader rejected an invitation to attend. Branding it a “talk fest for the union movement”, Mr Dutton told 2GB radio he refused to attend a summit that included “the thugs and grubs from the CFMEU”.

With Patrick Commins, Ewin Hannan