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PM derides opposition’s ‘vague’ tax cut commitment

Anthony Albanese says the coalition is being disingenuous with voters who are getting tax cuts.

Anthony Albanese says the coalition is being disingenuous with voters who are getting tax cuts. Photo: Getty

Australians could be promised further tax cuts ahead of the next federal election as the coalition promotes the idea as a key battleground issue, but with detail yet to come the prime minister has decried its vagueness.

Opposition Leader Peter Dutton says the coalition won’t vote against the government’s revised stage three tax cuts when they come before parliament, paving the way for the changes to come into law by July.

Under the plan, those earning under $150,000 will get a greater cut than under the original proposal, while those earning more will still get a tax benefit but less than previously forecast.

Dutton and other key opposition members like deputy Sussan Ley say they won’t stand in the way of relief for Australians doing it tough.

However, they have vowed to take further tax policy to the next election while remaining tight-lipped on specifics, saying any proposals must first be carefully considered and costed.

“Fifteen dollars a week that you get in July this year – that’s it. That’s what the government was crowing about yesterday on their victory lap,” Ley told Sky News on Wednesday.

“We’ll bring a policy in keeping with the intentions behind stage three tax reform, which were about addressing bracket creep and were about locking in support for aspiration for all Australians.

“That will take sensible, detailed work.”

But Prime Minister Anthony Albanese has derided the opposition’s pledge.

“I’ve never seen such a vague commitment,” he told reporters on Wednesday.

“If the opposition wants to say that they’re just going to have more tax cuts then … they need to say, what will the cuts be? And what will the new taxes be in order to make up for it? Either that or they’re going to be fiscally irresponsible.”

Pointing to the prime minister’s promise to keep the original tax plan untouched ahead of the 2022 election, the opposition has spent weeks hounding him over his “broken promise”, with Dutton going as far as to challenge Albanese to call an early election.

But the prime minister maintains the changes were made “for the right reasons” and many Australians including former Reserve Bank governor Bernie Fraser, agree.

“I was delighted that the Labor government was at last persuaded to revamp stage three of the tax cuts,” he told ABC radio.

“The original coalition plan was patently unfair to low-income groups and it was even unfair now in the light of the changes in circumstances over the last several years.

“Particularly to the lower-income groups who have been squeezed, their living standards have been squeezed, by increases in prices and interest rates and virtually stationary wage levels over the last several years … It was great to see that change to a fairer distribution.”

The coalition will refer the legislation to a Senate committee before it passes parliament, though the RBA has declared its not worried about inflationary pressure

Legislation enshrining the tax cut changes was introduced to parliament on Tuesday.

– AAP

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