Labor’s stage three tax cuts overhaul is not helping Anthony Albanese in Dunkley

Evidence is mounting that Anthony Albanese’s tax cuts decision is doing Labor’s chances more harm than good only three days out from the Dunkley by-election, which the policy change was designed to win.

As the Prime Minister furiously campaigns for Saturday’s by-election in the safe Melbourne seat, polls are continuing to find that not only is there no bounce for Labor from the tax cuts but also there is damage to Albanese’s integrity and credibility.

What’s more, Albanese told his MPs in Canberra on Tuesday that there were still voters who were unaware of the recast tax cuts that will cost $105bn over the next four years and were aimed at workers on lower incomes as “cost-of-­living relief”.

Albanese has pushed the tax cuts for the people of Dunkley earning less than $45,000 a year who would “get nothing” without Labor’s redesign of stage three.

Yet all the polling in the past few weeks, nationally and in Dunkley, shows no “bounce” for Labor as a result of the planned tax cuts: the ALP primary vote has fallen back to or below the level it was at the election; for the first time, the Coalition is ahead in some polls on a two-party-­preferred basis and the Coalition’s primary support is at or above what it was at the election.

Worse for Labor is the hit Albanese is taking to his credibility and integrity after breaking his election promise not to change the stage three tax cuts and being branded “the liar in The Lodge”.

The latest Essential poll shows his trustworthiness crashed 15 points to just 37 per cent and the Coalition was ahead of Labor on handling the cost-of-living crisis 33 to 28 per cent.

Peter Dutton’s campaign in Dunkley has steered clear of Labor’s tax cuts to concentrate on wider community concerns about Labor policies pushing up power and petrol prices as well as the pressure on housing, transport and jobs from record immigration.

There is also a sharp rise during the lead-up to the Dunkley by-election in the awareness of illegal boat arrivals and the fumbled handling of the release of 149 criminals.

While Albanese is saying some people are unaware of the tax cuts, more than two-thirds are “aware” of the illegal boat arrivals on the northwest coast.

The Leader of the Opposition Peter Dutton holds a press conference in Frankston with Senator Bridget McKenzie and Liberal Party candidate for the Dunkley by election, Nathan Conroy. Picture: David Crosling

In parliament this week, the government has talked about tax cuts and wage rises offering ­people the opportunity to “get paid more and keep more of what they earn”.

The opposition has not asked about the tax cuts but rather repeatedly sought answers on where record levels of migrants would live.

Jim Chalmers told parliament it was “dog whistling” about migrants but the danger for Labor is that the feeling of being squeezed by migration is an expression of fears about housing shortages, high rents, traffic congestion and job competition.

In Dunkley, all sides agree that concern about the rising cost-of-living is the “No. 1” issue, ­especially electricity prices, and that tax cuts of $15 a week from July 1 are not being seen as the answer, particularly for the people Albanese says don’t even know about them.