PM makes bombshell tax cut admission

Anthony Albanese has finally come clean with voters about what he’s going to do with the planned tax cuts this year.

Anthony Albanese has finally come clean with voters that he’s planning to take the axe to tax cuts for the rich.

At a press conference in Canberra the Prime Minister has dumped the “government’s position hasn’t changed” rhetoric as he was grilled over the broken promise.

“What is your word worth now to Australian voters?,” he was asked.

“My determination and my job is to get the best outcome for Australians,” he said.

“It’s to respond to the circumstances which we confront. And we know that there’s been considerable coverage about the pressure that is on low- and middle-income earners particularly with regard to cost of living.

“I’m a leader who speaks at the National Press Club and makes myself accountable, I’ll be giving a full exposition of economic policy and our response to provide assistance to middle Australia on cost of living at the National Press Club tomorrow.”

The Prime Minister was then asked what his message was to those Australians who would have been planning for the tax cuts to help pay their rising mortgages.

“We understand that Australians are under pressure,” he replied.

The comments come just 24 hours after the Prime Minister insisted that “everyone” will get a tax cut under the legislated changes.

It’s now clear that some workers earning over $150,000 will get less than what the PM promised at the last election and in multiple interviews since that day when he pledged the

tax cuts were locked in.

The changes will have to be endorsed by Parliament where they will need the support of the Greens and two cross benchers - for example Jacqui Lambie and David Pocock.

Winners and losers of PM’s tax backflip

Workers earning more than $150,000 a year are the biggest losers of Mr Albanese’s great big tax cut backflip.

The Prime Minister is set to roll the dice on the biggest gamble of his political career, abandoning an election promise not to tinker with tax cuts.

But the top end of town’s loss will be low- and middle-income earners’ gain.

Workers earning $135,000 or less are the biggest winners, with low- and middle-income earners set to secure a bigger tax cut than expected.

Mr Albanese dropped a big hint about the proposed changes this week while refusing to concede he was preparing to break a key election promise.

“If we can find ways to put extra dollars in people’s pockets, particularly those lower middle income earners who are doing it tough, then we are prepared to do so,” Mr Albanese told Sky News.

Anthony Albanese. Picture: Martin Ollman/NCA NewsWire

As the Prime Minister prepares to explain the proposed options to the ALP caucus on Wednesday, the federal cabinet has been briefed on the radical overhaul of promised tax cuts.

It’s a gamble that ties the political fortunes of the Prime Minister to his Treasurer – with both men set to cop the heat for the backflip.

Treasurer Jim Chalmers previously described the tax cuts for the rich as “offensive” before the 2019 election, and then promptly fell into line with the decision to support them.

Speculation over tax-free threshold

All workers can currently claim the tax-free threshold on the first $18,200 of income they earn in the year.

By increasing the threshold, for example from $18,200 to $20,200, most workers would get a tax cut of about $380 a year.

Mr Albanese told KIIS FM on Tuesday that “everyone” would get a tax cut, ahead of a cabinet meeting and a full ministry meeting on cost of living measures today.

Millionaire Kyle Sandilands demanded to know whether he – and others in the top bracket – would get a tax cut.

“Our boss here. He’s one of those over $250,000-a-year types. And he’s saying, ‘Oh, you heard a sniff this morning that he might be cut out of the tax cuts’,” Sandilands asked the Prime Minister.

“And I said, ‘Nah I don’t think so. I’m pretty sure everyone’s getting some sort of cut.’ What’s the latest on that?”

Mr Albanese at no stage offered any guarantee that tax cuts for the rich would remain untouched and as legislated.

“I support tax cuts. Everyone will be getting a tax cut,” the PM replied.

When Sandilands asked, “Me too?” the PM replied: “You will always be looked after, Kyle, because I know you’re struggling.”

“People laugh but I am in the highest tax bracket there is – the highest,” Sandilands said.

The Prime Minister’s office has repeatedly insisted there were no current plans to alter the tax cuts – a claim now proven to be false.

It has also suggested some of the speculation was “wrong” – while refusing to rule out changes.

“The government’s position hasn’t changed,” a spokesman said.

Anthony Albanese - who attended Kyle Sandilands’ wedding last year - appeared on the shock jock’s radio show to talk about tax cuts.

PM could ‘torch credibility’

“It’s one thing to offer more to low- and middle-income earners as an equity measure,” a Labor MP said. “But Anthony Albanese could torch his credibility if it’s seen as a broken promise.

“And then what happens if Peter Dutton says, ‘We will match it and leave the Stage 3 tax cuts for the wealthy untouched?’ Then we’re f**ked.”

Because the tax cuts are legislated, any changes will need to return to parliament for debate and new legislation.

Treasurer Jim Chalmers. Picture: Aaron Francis

Backlash looms over broken promises

Liberal frontbencher Angus Taylor warned Mr Albanese faced a huge backlash over any broken promise.

“The important point here is that this Prime Minister’s word means nothing,” he told Sky News host Peta Credlin. “His promises are absolutely meaningless. And in terms of broken promises, this one’s really egregious.”

Mr Taylor said Mr Albanese and Treasurer Jim Chalmers promised they would not touch the tax cuts “70 times”.

“This is a Prime Minister. He says one thing, he does another. It’s all politics,” Mr Taylor said.

The tax cut options raised by 2GB host Chris O’Keefe included lifting the tax-free threshold, which would give everyone a tax cut, but trimming the tax relief for high income earners over $180,000.

“OK, I’m gonna kick the show off like this. Stage 3 tax cuts – the Prime Minister Anthony Albanese is about to overhaul them, restructure them, re-legislate them, whichever way you want to spin it,” O’Keefe said.

“They are going to change. The Stage 3 tax cuts will not go ahead as planned. Now this is the plan that I’m told will go to cabinet tomorrow and then Labor’s caucus on Wednesday.”

Originally published as PM makes bombshell tax cut admission