Treasurer says he will ‘put the economics before the politics’ on stage three tax cuts

Environment Minister Tanya Plibersek acknowledged the history of the policy in an interview with ABC Radio National on Tuesday morning when she also warned about the possibility of a global recession.

“We did go to the last election committing to continue with those [tax cuts],” she said.

Greens leader Adam Bandt called the stage three cuts “economic vandalism” and said the government should heed the lesson from the UK and scrap them.

Chalmers said the political consequences would not be the priority because the government would make the decision that was best for the economy.

“I see budgets as an opportunity to take the right decisions for the right reasons and I will always put the right economic outcome above a political outcome,” he said.

“I will take a difficult decision if it is necessary, working with my colleagues, because these are difficult times and people should expect a solid budget, they should expect a considered budget, one that takes the right decisions for the right reasons, for the future of our economy, but most importantly for the future of our people.

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“It is no use pretending the global situation has not deteriorated, there is no use pretending that rising inflation is not punching a hole in the family budget, there is no use pretending that we do not have these big five areas of persistent structural pressure on the budget.

“And my job and the government’s job is to take the right decision, even if it is difficult, to put the economics before the politics and let the political cards fall where they may and that is what people can expect from me, not just in the budget but beyond that as well.”

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