Anthony Albanese has skirted around whether or not he will ironclad the contentious stage 3 tax cuts amid calls from the opposition to “give money back to the Australian people.”
When asked to clarify whether he would commit to the tax bracket increase the Prime Minister insisted that his stance hadn’t budged since last year’s election.
“The first is that the government’s position hasn’t changed. The second is that inequality is an issue and the government has looked at ways in which we can improve that position,” Mr Albanese said on Monday.
The stage three tax cuts, which were legislated under the former Morrison government, will abolish the 37 per cent bracket that applies to income between $120,000 and $180,000.
The reforms will also apply a 30 per cent rate to all earnings between $45,000 and $200,000 and will come into effect from July 1.
Mr Albanese repeated recent comments made by Treasurer Jim Chalmers who argued that returning bracket creep would be a “worthy aspiration” if done in the right way.
“Bear in mind that the stage three tax cuts start at $45,000. $45,000 if that’s your annual income, you are certainly not wealthy,” he said.
Unconvinced by Mr Albanese’s response, Nationals MP Barnaby Joyce called on Labor to cement its promise to commit to the cuts.
“This is not the government’s money, it is your money, your effective tax rate has gone up. Therefore, the government is taking more of your money,” Mr Joyce said.
“It is an easy surplus, put the money into the Treasury bracket. We need to start giving the money back. If we don’t, it is a swindle – a slow-burning swindle on the Australian people.”
Labor has faced mounting pressure from the Left who argue the tax cuts would be inflationary at a time when the government is fighting to bring down persistent inflation.
Oxfam Australia chief executive Lyn Morgain said it would be an “absolute travesty” if the government didn’t ditch the cuts.
“It is absolute lunacy that at a time when Australia cannot adequately house its people or contribute our share to the global crisis, we are giving away money to the top end of town,” she said.
Mr Albanese said the tax cuts had already been factored in by the Reserve Bank of Australia’s and Treasury inflation forecasts
“We think that in terms of income tax relief that is one way to assist people because it does mean extra dollars in people’s pockets,” he said.