Jim Chalmers has denied any rift between himself and Anthony Albanese after being questioned by Nat Barr about their relationship following the broken promise of the third tax cut.
Reports circulated that the Prime Minister was unhappy with Mr Chalmers for having to take the blame for breaking his promise not to change tax cuts.
When asked about the state of their relationship on Sunrise on Monday morning, the treasurer said the pair were still “good friends.”
“A report came out this morning that Anthony Albanese is annoyed that he is taking the blame for you for this broken promise. How is your relationship with the Prime Minister?’ Barr asked.
‘Very close and effective working relationship. We are good friends, we had dinner last night and breakfast not so long ago at The Lodge,” Mr. Chalmers replied.
Natalie Barr called out Jim Chalmers on Sunrise over reports he was feuding with Anthony Albanese
“We speak to each other almost every day, I’ve seen those stories and it’s downright nonsense.”
Barr then asked whether Mr. Albanese was “a little angry” with Mr. Chalmers over the impact of the tax cut change.
“Is he a little angry though?” Barr said. “The whole ‘my word is my bond’ thing keeps coming up?”
“No, it isn’t,” said Mr. Chalmers.
“He’s put people before politics, he’s done something meaningful and tangible to help people with the cost of living, and that’s what matters.
‘We are good friends and have a close and effective working relationship.
“I’ve seen those stories and they’re wrong, completely wrong, they’re nonsense.”
Jim Chalmers has denied any rift between himself and Anthony Albanese after being questioned by Nat Barr about their relationship following the broken promise of the third phase of the tax cut
The coalition passed the third phase of tax cuts through parliament in 2019 and Mr Albanese repeatedly promised no changes would be made.
He has since reworked the original plans, halving the benefit for Australians earning more than $180,000 in favor of a boost for lower earners.
The big winners under Labor’s withdrawal include those earning $45,000 a year, who will now get up to $805 off their tax bill instead of nothing, which they would have gotten under the Coalition legislation.
And the 85 percent of taxpayers making between $50,000 and $130,000 will get $804 more than what was previously promised.
Those who have the most to lose if Labor’s changes reach the Senate with cross-bench support are Australians earning more than $200,000, who will see their tax savings halved from $9,075 to $4,529.
The move has sparked outrage, with opposition leader Peter Dutton calling for an immediate election.
It has also led to reports citing Labor sources that the relationship between Albanese and Chalmers was on ice.
A Labor insider wrote that the Prime Minister’s relationship with the Treasurer has been “fragmented” over the policy lapse – to the extent that the two are not even speaking to each other.
More to come