Opposition Backs Labor’s Backflip on Tax Cuts for High Earners

Leader of the Opposition Peter Dutton speaks to media in Melbourne, Australia on Dec. 12, 2023. AAP Image/Joel Carrett

The opposition has confirmed it will support the federal government’s stage three tax cut changes, while trying to paint Labor ministers as lying to the Australian public.

On Feb. 6, the Liberal-National Coalition held a party room meeting to discuss its stance on the Labor government’s changes to the original tax plan legislated under the former Morrison government.

In a press conference after the meeting, Opposition Leader Peter Dutton said his party would not stand in the way of the changes.

“The prime minister has made this change for his own political survival,” he told reporters.

“We are supporting this change not to support the prime minister’s lie, but to support those families who need help now.

“Because Labor has made decisions that have made it much harder for those families, and that is the position we have adopted as a party room.”

At the same time, the opposition leader accused Prime Minister Anthony Albanese of being a “liar” after repeatedly failing to keep his promises.

“I think again Australians have been shocked to know they have a liar in The Lodge and a prime minister who looks the Australian public in the eye and is prepared to lie to them,” he said.

“The prime minister deliberately deceived the Australian public on The Voice, deceived the public in relation to bringing down energy costs, and deceived the public in relation to the tax cuts, which are promised on more than 100 occasions.”

Shadow Finance Minister Jane Hume said the opposition would take a strong tax policy to the next election that was “fairer” and brought “aspiration” back to the economy.

“It will be a policy that is fully costed, that goes through all the right processes, that will deliver on Australians security and guarantee essential services,” she said.

Under Labor’s legislation, Australians earning below $135,000 (US$87,600) per year will receive greater tax reduction, while those with higher incomes will still benefit from the tax cuts but at a much lesser degree compared to the original plan.

The government forecasted that around 13.6 million taxpayers would receive a tax cut, 2.9 million more than the original plan.

Labor has introduced legislation into the House of Representatives on Feb. 6 for a vote.

Prime Minister’s Defence

Meanwhile, Mr. Albanese defended the changes to the stage three tax cuts, saying it was due to cost of living pressures.

“I was quite clear about us changing our position and why we were doing it,” he told reporters.

At the same time, the prime minister took aim at the opposition for changing its stance on the issue.

“I note the various reports today saying that the Liberal Party has changed its position on stage three tax cuts. If this is carved in stone, how is it that they have changed their position?” he said.

“If they are fair dinkum, then their response must be to not only oppose what we are putting forward with our legislation we'll introduce today but to promise to roll it back.

“Unless they do that, then it’s all just wind, it’s all just politics. What we are about is people, not politics.”