A cabinet minister says the government has no plans to ditch controversial tax cuts after a week of division within the Labor Party over the political risks for Prime Minister Anthony Albanese if he reneged on his election commitment to keep the legislated tax breaks.
“We have no plans to change those stage three tax cuts,” Resources Minister Madeleine King told Sky News on Sunday.
Resources Minister Madeleine King says the Albanese government will keep its election commitment and has “no plans” to ditch the controversial tax cuts.Credit:James Brickwood
“Obviously, there is a conversation going on in the community … but right now this government is not planning any changes.”
Treasurer Jim Chalmers on Friday indicated the government was considering amending the policy to benefit workers on low and middle incomes who are set to receive a tax break under the cuts, but to a lesser degree than high-income earners.
The tax cuts were legislated by the former Coalition government in 2018 to be introduced in 2024, but debate has flared over whether, in the current economic climate, it was appropriate to deliver people earning over $180,000 a tax discount of $9075.
The Sydney Morning Herald and The Age confirmed that Treasury officials were asked to prepare a new cost estimate for the stage three tax cuts amid concern the impact of the package will exceed the $243 billion forecast made only months ago.
“When it comes to the tax cuts, I think we’ve made the obvious point that when it comes to cost-of-living relief, it should be targeted to people on low and middle incomes,” Chalmers said.
Opposition Leader Peter Dutton said the tax cuts were intended to be in three stages, with the first two stages aimed at middle-income earners and stage three for those on higher incomes.
“[The stage three cuts are] not inflationary over calendar 2023, which is an important point, and we are going to need, given what will happen in the US and UK and potentially a global recession, we will need stimulus in 2024 and it is exactly the right timing and we are thoroughly vindicated in our policy, so much so Labor voted for it in the parliament,” he told ABC’s Insiders on Sunday morning.
He said the debate within Labor had revealed divisions in the party.
“What we’ve seen this week is a real split between the prime minister and treasurer, and the treasurer has demonstrated his inexperience.”
Shadow treasurer Angus Taylor said any changes to the legislated cuts would constitute “a war on aspiration”.
“This is about middle Australia making sure they can earn or keep more of what they earn,” he said.
“We’re seeing extraordinary inflationary pressures right now. And we know with inflation, the average Australian pays a higher rate of tax.
“These tax reforms were designed very carefully to make sure there was an incentive for Australians to get out there to have a crack.”
With AAP
Most Viewed in Politics
From our partners
Source: Read Full Article
