Peter Dutton pushed to oppose Labor’s stage three overhaul

Coalition MPs are urging Peter Dutton to oppose Labor’s overhauled stage three tax cuts package in the parliament.

Opposition Leader Peter Dutton. Picture: NCA NewsWire / Martin Ollman

Coalition MPs are urging Peter Dutton to oppose Labor’s overhauled stage three tax cuts package in parliament, after he and deputy Liberal leader Sussan Ley left open the possibility of offering bipartisan support.

Nationals MPs Michael McCormack, Barnaby Joyce, David Gillespie and Matt Canavan, as well as Liberal senator Hollie Hughes, called on the Opposition Leader to oppose the changes, warning it would be a major breach of voters’ trust if the Coalition did not carry through with the original stage three tax cuts as promised.

It came as Ms Ley backflipped on her Wednesday call to fight and roll back Labor’s revamped stage three cuts – which retain the 37 per cent tax bracket for workers earning more than $135,000 and applies a 45 per cent top tax rate to incomes above $190,000 – instead saying the opposition would assess the new proposal.

“I did not say we would roll back Labor’s new proposal. I said we support the existing stage three arrangement and we would assess the new proposal,” Ms Ley told ABC Radio.

The Albanese government will need upper house support from the Coalition or the Greens plus two crossbench senators to get the changes – due to take effect from July 1 – through parliament.

Mr McCormack said the Coalition must “do what we said we were going to do” and proceed with the original stage three cuts in full if it wins the next election.

“It’s not so much blocking it, it’s doing what we said we would do, it’s doing what Labor said they would do prior to the election,” he said. “You can’t say one thing to try to win the hearts and minds ahead of an election and then do something differently.

“You have to honour your commitments … we are keeping faith with the Australian people.”

Dr Gillespie said he did not support Labor’s overhaul and the Coalition should maintain the tax cuts in their legislated form.

“Bracket creep has led to more personal income tax receipts and the whole idea of this policy was to address bracket creep and to give more funds back to hardworking Australians,” Dr Gillespie said.

Mr Joyce said the opposition must oppose Labor’s overhaul to shield voters from the government’s broken election promise.

“I reckon if someone gives a promise then that’s a promise … My first instinct is that when you make a promise you must keep the promise otherwise what’s the point, elections would turn into nonsense,” he said.

Senator Hughes was certain Mr Dutton would follow through on what was promised and legislated but also look at taking further productivity-boosting measures to the election, branding Labor’s overhaul a “blow to all aspirational Australians”.

Nationals MP Keith Pitt said the opposition should “stick like glue to our commitment to stage three tax cuts”.

He attacked the government for removing the low- and middle-income tax offset, which provided a lump-sum payment to about 10 million taxpayers.

The temporary measure was introduced by the former Coalition government but neither major party had promised to extend it beyond the ‘22 financial year. “What sort of a hypocrite is Jim Chalmers. He takes away LMITO worth up to $1500 and now wants a pat on the back for giving back $800 in exchange, like it’s some sort of glorious solution,” Mr Pitt said.

Mr Dutton on Thursday would not confirm whether the opposition would support the changes, saying the party would consider the detail of Labor’s proposal.