Anthony Albanese defends his Stage Three tax cut plans but rules out increasing welfare payments to help get them through parliament

Anthony Albanese has ruled out an increase in social benefits in exchange for support from several banks to ensure the government’s proposed changes to the third phase of tax cuts are passed.

Under a revised plan unveiled by the Prime Minister on Thursday, anyone earning less than $150,000 will get a bigger tax cut, while those earning more will be eligible for a smaller benefit than previously promised.

The changes to the original phase three tax cuts first introduced by the Coalition will need to be approved by Parliament before coming into effect in July, with the government needing support from the Greens and the crossbench.

The Prime Minister has been criticized for breaking his original tax promise to higher earners, but he said he supported the proposed package that would deliver a tax cut to “every Australian”.

“We know that low- and middle-income Australians are under financial pressure (and) it is the government’s responsibility to address that,” he told reporters in Orange on Saturday.

“That is why the government has changed our decision… due to persistent inflation.

“We are determined to do something about it, we made the right decision for the right reasons.”

But Albanese said the government will not renegotiate benefit rates in return for parliamentary support for the changes.

“What we’re focusing on here is middle Australia that’s struggling, the middle-class working families that are doing it tough because of rising inflation and the cost of living. This program is aimed directly and clearly at them,” he said.

‘We take into account (the welfare rates) in every budget, but what we are not going to do here is trade.’

The government is expected to introduce legislation for the tax changes when parliament returns for the year in the first week of February.