Politics LIVE updates: Anthony Albanese unveils stage 3 tax changes; Australian of the Year to be announced - Sydney Morning Herald

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Sussan Ley backflips on pledge to roll back tax package

Deputy Opposition Leader Sussan Ley has backflipped on her comments yesterday pledging to roll back the Labor government’s new tax package if the Coalition won the next election.

Ley was asked on Sky News yesterday whether the Coalition would “roll back whatever changes are made” and she replied, “Well, this is our position. This is absolutely our position.”

But speaking on ABC Radio National this morning, Ley said she wanted it to be clear that she did not pledge to roll back the new tax package.

Deputy Leader of the Opposition Sussan Ley.Credit: Alex Ellinghausen

“I did not say we would roll back Labor’s new proposal. I said we support the existing stage 3 arrangement and we would assess the new proposal,” she said.

“Labor lied about these tax cuts and now they have lied about what I said.”

Asked if the Coalition would vote against the government’s tax reform, which would mean lower taxes for a large group of Australians, Ley would not say if her party would promise to increase taxes.

“Taxes will always be lower under a Coalition government … we will assess the proposal,” she said.

“It doesn’t surprise me that Labor is lying about what I said, it doesn’t surprise me at all. What I said was this, our position is the stage three tax cuts should be implemented as designed and endorsed by the Australian people.”

RBA governor was consulted, says Chalmers

Treasurer Jim Chalmers does not accept that the tax cuts will add to demand and keep upward pressure on domestically generated inflation, saying it was not the view of Treasury or the Reserve Bank of Australia.

During his interview on ABC Radio National, Chalmers said RBA Governor Michele Bullock was consulted about the reformed stage 3 tax package.

“We have consulted the Reserve Bank governor, and Michele Bullock … can provide her own view about these tax cuts but obviously in … our usual diligent and methodical way, I have consulted the Reserve Bank governor,” he said.

“[Bullock] has indicated to us that she does not expect what we’re proposing today to alter the Reserve Bank’s forecasts.”

Chalmers says trust is built through taking the right decision

Treasurer Jim Chalmers says the government will build trust despite its broken promise, as its stage 3 tax package has been changed for the right reasons.

Speaking on ABC Radio National, Chalmers would not say directly that his government had broken an election promise, instead saying the Labor government was choosing people over politics.

“You build trust by taking the right decisions for the right reasons, in the interest of the people, even when those decisions might be politically contentious or politically difficult,” he said.

“We are putting people before politics. We understand people are under pressure, right up and down the income scale, but even better than just acknowledging the pressure that people are under, we are doing something about it.”

New stage 3 tax package about ‘aspiration’: Chalmers

The government has come to a different view and been upfront about it, says Treasurer Jim Chalmers, who argues the government’s reformed stage 3 tax package will make Australians better off.

Chalmers told ABC News the stage 3 tax package was about “aspiration” for people to get ahead on cost-of-living pressures.

Treasurer Jim Chalmers says the reforms to stage 3 tax cuts will better support middle Australia.Credit: Alex Ellinghausen

“It’s about people who work hard being able to provide for their loved ones and get ahead, and it recognises the economic conditions that we confront right now, which are defined by these cost-of-living pressures,” he said.

“We don’t just acknowledge those pressures, we’re doing something about it. The best way to do that is to reject the stage 3 tax cuts so that everyone still gets a tax cut.”

The opposition slamming the government for breaking its election promise is “nasty, negative and mindless politics”, said Chalmers, who said he was confident Australians would trust the government at the next election.

“What this demonstrates is that we have a prime minister who was prepared to take the difficult ... decisions in the interests of the people even when the politics are hard,” he said.

“The reason I’m pointing to the nasty, negative and mindless politics being played by our opponents, is because they don’t want your viewers to focus on the fact that everybody’s still getting a tax cut.”

Albanese’s revamped tax plan

By David Crowe

More than 11 million Australians will receive bigger tax cuts in a bid by the Albanese government to convince voters to back a sweeping overhaul of the stage 3 tax package.

A worker on the average full-time salary of $73,000 a year would receive a tax cut of about $1500 a year under the new plan, according to a Treasury analysis that says the proposals will encourage more people into work.

That compares with a tax cut of only $625 for someone earning $70,000 a year under the original stage 3 package, according to figures from the Tax Institute.

A worker earning $100,000 a year will gain a tax cut of $2100 a year under the Labor policy, compared with a tax cut of $1375 under the original plan put in place by the Coalition almost five years ago.

A worker on $40,000 will receive a tax cut of about $650 a year but was due to receive no benefit under the original stage 3 plan because the Coalition argued that workers on lower incomes were given earlier benefits in stages 1 and 2 of the tax package.

A second element of the plan will cut the existing 32.5 per cent tax rate to 30 per cent on earnings between $45,000 and $135,000 a year, delivering another gain that extends to workers who receive more than the average full-time salary.

The package will retain the existing 37 per cent rate and apply it to all earnings above $135,000 in a significant revision of the original stage 3 package put in place by the Coalition more than four years ago, with the effect of scaling back the gains for those on higher incomes.

The top tax rate of 45 per cent will apply to earnings above the threshold of $190,000 a year, which is higher than the existing threshold of $180,000, but scales back the benefits in the original plan at the top end of the income scale.

For more details on the Albanese government’s plan, read the full story here.

Good morning

Good morning and welcome to our live coverage of Australian politics.

Prime Minister Anthony Albanese will ask Australians to support a new plan for the stage 3 tax package that breaks a core election pledge to deliver the original cuts in full.

Albanese will be appearing before the National Press Club today to unveil the changes.

Meanwhile, Deputy Opposition Leader Sussan Ley vowed on Wednesday to “roll back” the changes if the Coalition won power at the next election.

It’s bound to be a busy day full of politics. Stay tuned here to keep up to date.

Prime Minister Anthony Albanese during his press conference at Parliament House in Canberra on Wednesday.Credit: Alex Ellinghausen

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2024-01-24 20:51:59Z
CBMipgFodHRwczovL3d3dy5zbWguY29tLmF1L3BvbGl0aWNzL2ZlZGVyYWwvcG9saXRpY3MtbGl2ZS11cGRhdGVzLWFudGhvbnktYWxiYW5lc2UtdW52ZWlscy1zdGFnZS0zLXRheC1jaGFuZ2VzLWF1c3RyYWxpYW4tb2YtdGhlLXllYXItdG8tYmUtYW5ub3VuY2VkLTIwMjQwMTI1LXA1ZXp3Mi5odG1s0gGmAWh0dHBzOi8vYW1wLnNtaC5jb20uYXUvcG9saXRpY3MvZmVkZXJhbC9wb2xpdGljcy1saXZlLXVwZGF0ZXMtYW50aG9ueS1hbGJhbmVzZS11bnZlaWxzLXN0YWdlLTMtdGF4LWNoYW5nZXMtYXVzdHJhbGlhbi1vZi10aGUteWVhci10by1iZS1hbm5vdW5jZWQtMjAyNDAxMjUtcDVlencyLmh0bWw

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