Anthony Albanese has been questioned about his credibility after reworked phase three tax cuts, which he guaranteed would be left untouched, were passed overnight.
A vote in the Senate took place on Tuesday evening in which the Coalition reluctantly backed the government’s tax overhaul, which means all 13.6 million Australian taxpayers will receive tax relief from the middle of the year.
While the Prime Minister appears to be banking that the extra money in voters’ pockets will help them forget his broken promise, a new poll suggests that may not be the case as his perceived trustworthiness takes a dive.
‘These were different changes than the position you took during the elections. However, are you afraid that all this will be at the expense of your credibility?’ ABC News Breakfast host Michael Rowland asked the prime minister on Wednesday.
A The Essential Poll, published in The Guardian this week, found the Labor leader’s trustworthiness has fallen by as much as 15 points.
Breakfast presenter Michael Rowland quizzed Albanese on whether he was concerned his credibility had been damaged by his broken promise on the third stage of the tax cut
‘It wasn’t an easy decision, but it was the right decision for the right reasons. We know that families are under pressure,” Albanese responded.
“The idea that we could sit back and ignore the clear recommendations that this was the best way to influence the delivery of that aid to central Australia without putting upward pressure on inflation – we couldn’t ignore that .
“The Liberals said they would oppose it. Then they said they would reverse it. Then they said we should take it to the elections. Then they finally voted for it. So they have also changed their position.’
Mr Albanese said Australians should see more money in their bank accounts from the middle of this year, with the changes coming into effect from July 1.
“By implementing it now there is time for employers to take action and when you have that kind of increase in income it will obviously be very positive for people to be able to plan for it,” he said.
At a press conference after the tax package’s passage, he called the change a “huge win” for Australian workers.
“Australians will earn more and they will get to keep more of what they earn,” Albanese said.
Ahead of the final vote, opposition spokeswoman Jane Hume told the Senate the Coalition would not oppose tax relief for Australians.
“But that doesn’t mean we condone the lie that was told,” Senator Hume said, pointing to the government’s broken promise to change the tax package.
The Greens, who wanted to refer the legislation to committee, received no support for their proposal.
The Albanian government’s adjustment to the third-stage tax cuts maintains the tax-free threshold at the current rate of $19,200, reduces the rate on income up to $45,000 to 16 percent – down from 19 percent – and lowers rate of $45,000. tax bracket from $135,000 to 30 percent – down from 32.5 percent.
In addition, the 37 percent tax bracket remains between $135,000 and $190,000, with the top marginal tax rate then kicking in at $190,000 at a rate of 45 percent.
The overhaul takes advantage of tax changes introduced by the then Morrison government in 2019, which would have created a single tax bracket between $45,000 and $180,000 at a 30 per cent rate.
Despite providing additional relief to taxpayers under pressure from high interest rates and still high inflation, Albanese has failed to gain further support in the polls, according to surveys by Newspoll and Resolve.
The coalition has pledged to develop a tax reform package that would be “consistent with the Phase 3 tax cuts” before the next federal election, due no later than May 2025.
The passage of the bill comes just days before the crucial Dunkley by-election, which will be a litmus test for central Australia, which is under pressure from cost-of-living pressures.
Albanese and opposition leader Peter Dutton have both shrunk their chances of electoral success in Saturday’s by-election.