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Australian Prime Minister Anthony Albanese has strengthened his insistence that the government’s position on the income tax cut has not changed.
Speculation continues that the government is considering changes to the third phase of tax cuts, which will take effect in mid-2024.
Treasury Secretary Jim Chalmers was accused by opposition parties of warning of dire economic conditions and laying the groundwork for changes to the cuts enacted that week.
But while in Perth on Sunday, Albanese said his position on the cuts had not changed.
Concerns have been raised that tax cuts will spur inflation, but the prime minister said the budget, which is due to be submitted within two weeks, will take into account current economic headwinds.
“They are expected to arrive in 2024,” he told reporters.
“We are preparing a budget in October 2022,” he added.
Albanese said the government was working to complement the Reserve Bank’s policies to ensure that inflation was contained.
“Then fiscal policy [monetary policy] I’m not against it,” he said.
Resources Minister Madeleine King also backed the tax cut, adding that it was okay for communities to discuss tax policy.
“Clearly there are conversations going on in the community… but right now this government is not planning to make any changes,” she told Sky News.
Opposition wants change exemption
But Shadow Treasurer Angus Taylor wants the prime minister to rule out future changes categorically.
“We need to see Anthony Albanese deny dropping tax cuts,” he said.
Taylor said any change constitutes “a war on aspirations.”
“It’s about Central Australia, allowing them to earn or keep more of what they earn. We’re seeing extraordinary inflationary pressures right now. With inflation, the tax rate the average Australian pays I know that will be higher.
“These tax reforms have been very carefully designed to ensure that Australians have an incentive to get out there and get crack,” he said.
Opposition leader Peter Dutton said Albanians need to honor his commitment to keep the cuts.
“The prime minister has promised many times not to decline, but between now and the next election it seems he is still thinking about it,” he told ABC’s “Insider” show.
“That’s an unforgivable, ridiculous mistake,” he added.
He said the coalition honors its commitment to cuts when it comes to power.
“We went on a promise (to support tax cuts) in the last election, and I’m not going to break that promise,” he said.
“We will run our policies for the next election and if we succeed in government, we will honor it.”
Dominic Giannini
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Australian Associated Press is an Australian news agency.
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