Prime Minister Anthony Albanese set to propose overhaul of stage three tax cuts in ‘broken election promise’

The Prime Minister is poised to break one of his key election promises not to touch stage three tax cuts with plans to restructure the plan set to go to cabinet this week.

Despite insisting on multiple occasions in both opposition and in government, Anthony Albanese is expected to overhaul the legislated tax cuts set to come into effect on July 1.

According to 2GB’s Chris O’Keefe, Australians can still look forward to a tax cut, but higher income earners will suffer a significant trim on their expected returns.

Under the plan, the tax-free threshold – currently at $18,200 – will be increased, while the top marginal tax rate will remain at $180,000 rather than $200,000 as promised in the Coalition-era policy.

This means Australians earning between $180,000 and $200,000 will pay 45 cents on the dollar to the taxman as opposed to 30 per cent.

The slated changes will mean those earning more than $180,000 a year will get $6,000 a year back instead of $9,000, according to O’Keefe.

The changes will go to Cabinet on Tuesday or Wednesday and come amid heightened debate over the stage three tax cuts.

“Now, Anthony Albanese will rightly argue that he’s delivering cuts to people’s tax because he is, he is, but it is not the program that we voted for at the 2019 election,” O’Keefe said on Monday.

Deputy Nationals leader Perin Davey said if the government followed through on the reported changes it would be a definite “break of an election commitment”.

“If that is what the Prime Minister does. He’s breaking an election commitment,” Ms Davey told Sky News Australia’s Tom Connell on Monday.

“It is a broken election promise because he promised he wouldn’t touch stage three tax cuts.”

Passed in 2019 as part of the former government’s tax reform, the stage three tax cuts will abolish the 37 per cent marginal tax rate and lower the 32.5 per cent marginal tax rate to just 30 per cent.

The taxable income threshold for the 45 per cent marginal rate will also be lifted from $180,000 to $200,000 – creating a flat 30 per cent tax rate on income between $45,000 and $200,000.

Mr Albanese and Treasurer Jim Chalmers have consistently said the government had not changed its position on tax cuts.

Cost of living crisis prompts government meeting

As recently as last week, Mr Albanese was going to be “no changes” to the policy.

“Tax cuts will happen in July,” Mr Albanese said on Wednesday.

“We’re committed to that… we haven’t changed our position.”

Opposition Leader Peter Dutton said last week the Prime Minister’s leadership would be in jeopardy if there were any alterations to the plan which both parties took to the election.

“I think his leadership’s over if he abandons the stage three tax cuts because Australians have seen this movie before and they don’t reward leaders who go to an election with an ironclad guarantee, and then knowingly break it,” Mr Dutton told 2GB on Thursday.

Stage three tax cuts ‘painted by the crazy left’ as ‘gift to the rich’: Joe Hildebrand

The Prime Minister will speak at the National Press Club on Thursday where he is expected to address the tax cuts and a looming cost of living package.

Labor ministers will gather in Canberra on Wednesday afternoon for the meeting to discuss potential fixes that can be implemented to ease the cost of living burden for Aussie families.

Mr Albanese said the caucus will consider advice it has received about how to take the pressure off cost of living for those who are doing it tough “without putting pressure on inflation”.

“But we’ve always said that we’ll continue to look for ways to assist people,” Mr Albanese told Sky News Australia Chief Anchor Kieran Gilbert on Monday.

“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’re prepared to do so.”

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button