Anthony Albanese has broken an election promise to the Australian public a whopping 36 times after claiming he was a ‘man of his word’.
But as details of his renewed phase three tax cuts emerge, the Prime Minister’s new political calculation is becoming clear.
He and his advisers have plotted that voters will not care about his shameless backflip, while so many pocketbooks will be fattened by his surprise tax plan.
Only 3.4 percent of voters earn more than $180,000 — and they are the workers who will suffer the most from Mr. Albanese’s backflip.
The tax credit for the highest income workers has been halved – from $9,075 for Aussies earning more than $200,000 under the previous policy to $4,529 now.
Most lower- and middle-income voters will be either unaffected or better off after the surprise tax change than under the Morrison government’s policies.
A worker with $100,000 in income would have received $1,375 in additional tax time under the original plan. Now they take home almost double that: $2,179.
And people earning $45,000 – who would have taken nothing home under yesterday’s policy – will now be $804 better off in July.
The benefits are starting to emerge for voters making $150,000 or less. On that salary, a person would have received a $3,975 tax cut under the original legislation. Now they’ll take home $3,739 instead.
For people with an income of $180,000, the reimbursement is significantly lower: from $6,075 to $3,729.
Mr Albanese has tried to make a virtue of what the opposition has labeled an “election-winning lie”.
On Wednesday, he portrayed himself as making a tough decision — rather than responding to an increasingly treacherous political climate.
“My job is to respond, ask for advice and then make a difference,” he said Wednesday. “To make the right decision, not the easy decision.”
For some voters, the principle he violated will count.
The prime minister assured the public no fewer than 36 times – a conservative estimate – that he would not interfere in legislative policy.
He even carried that position into an election, but did it anyway.
Critics find it offensive that the prime minister described himself as a rare politician who kept his word only to abandon his promise when the political winds shifted.
Deputy Opposition Leader Sussan Ley said: “The Prime Minister’s election victory was based on a lie. Labor won this election on lies.
“If you can’t trust Anthony Albanese on this, what can you trust him on?”
The move could also offend many ambitious Australians who want to excel in their careers and build wealth.
As the Australian newspaper noted, the top tax brackets in Britain and the US are at much higher levels than those in Australia.
In the US, a 37 percent tax starts at $609,000 ($AUD925,000) and in Britain at £125,000 ($AUD241,000). The top bracket will now be $190,000, up from $180,000.
Even some of the Teal MPs – who have provided ample support to Labor during this term – have criticized Mr Albanese’s decision.
Both Zali Steggall and Allegra Spender – who represent the high-income voters of Fairy Bower and Vaucluse – have questioned the government’s plan.
Ms Steggall said: ‘It seems arbitrary and politically opportunistic where the thresholds have been chosen.
There are no two ways about it: Prime Minister Anthony Albanese has broken an election promise he made to the Australian public
“The Prime Minister and Treasurer should have been forthright with the Australian people prior to the last election, or at least over the last 12 months.
“This absolutely has a negative impact on their credibility and trust in this government and all its obligations.”
But there are also plenty of middle-income voters struggling with the rising cost of living.
The Prime Minister hopes they will be less concerned about him keeping a promise and will be happy with what he is doing to help them.
And Mr Albanese – criticized by the opposition as Airbus Albo for his overseas travels and criticized for prioritizing The Voice – will have something to take credit for.
He will try to do that when he explains his plan at the National Press Club on Thursday.