Anthony Albanese is under renewed pressure to scrap a tax cut which would predominantly benefit the wealthiest Australians.
The Greens, emboldened by the International Monetary Fund’s suggestion the government should re-evaluate the stage three personal income tax cuts, have put the policy firmly on their hit list.
“We are going to use every opportunity to raise … scrapping the stage three tax cuts,” a spokesperson said following a meeting of the minor party room.
“Essentially (we’ll be) using every opportunity we can to be keeping the focus on the need to scrap the stage three tax cuts, so we can afford to spend on all of the social services – raising income support, dental care, Medicare.”
The cost of the tax cut has blown out since announced by then-treasurer Scott Morrison, jumping from $11bn to $254bn over the next decade.
Under the cuts, the 37 per cent marginal tax rate for those earning over $120,000 will be dumped and the 32.5 per cent tax rate will be cut to 30 per cent for people earning between $45,000 and $200,000.
Last week, the IMF urged the government to undertake significant tax reforms to improve the budget bottom line, including changes to NDIS funding and winding back the capital gains tax exemption when people sell the family home.
Mr Albanese and Treasurer Jim Chalmers have repeatedly shut down changes to the stage three tax cuts ahead of the May budget.
“Our position on those tax cuts hasn’t changed,” Dr Chalmers said when asked if it would consider putting the money saved into programs such as Jobseeker.
Addressing the Labor caucus, the Prime Minister declared the government had “hit the ground running” but cautioned his MPs that the upcoming budget won’t please everyone.
“There are many more things that we would like to do, then it will be possible to do,” Mr Albanese said.
Opposition leader Peter Dutton used his own rally cry to sharpen his attack, seeking to link the recent rate rises to the election of the Albanese government.
“What we’ve seen from Anthony Albanese and the Labor Party in the last eight months is that every economic decision they have taken has contributed to an upward pressure on interest rates, so it means people always pay more for their mortgages under Labor,” he told his troops.
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