Peter Dutton’s Stage Three tax cut plan revealed ahead of parliament vote on Anthony Albanese’s changes

The future of the amended tax cuts in phase three could be decided in the opposition party’s chamber, with the coalition expected to make its final position on the changed policy.

Legislation supporting broader tax cuts will be presented to the House of Representatives on Tuesday, as the federal parliament convenes for its first session of 2024.

While the government has come under fire for breaching its election promise to leave the third phase of tax cuts untouched, the opposition is expected to shore up some form of support for the changes at a joint party hall meeting on Tuesday, after a shadow cabinet meeting on Monday evening. .

The floor of parliament. MPs must pass the tax legislation soon before the cuts come into effect on July 1.

Opposition leader Peter Dutton has remained critical.

“Most Australians are still shocked that we have a prime minister who looked the Australian public in the eye and completely lied to them,” Dutton told reporters on Tuesday.

According to a media report, Dutton plans to accept the revised package, but the coalition will step up calls for more generous tax cuts so that workers are no longer hit by the tax increase when their income exceeds the tax thresholds that apply a higher tax rate.

Liberal sources, who spoke anonymously to discuss private conversations, said the majority of coalition MPs agreed the opposition should try to amend the bill, but would ultimately vote in favor if the amendments failed,” the Sydney reported Morning Herald.

Only a small handful of MPs wanted to oppose the legislation, the sources said. But Prime Minister Anthony Albanese has insisted the tax cuts were necessary, and most workers are expected to benefit from the revised proposal.

“This will be a debate that we not only want to have, but that we are excited about, because it is about caring for people,” he said at a caucus meeting on Monday.

“What we have done is not make an easy decision.

“We made the right decision at the right time, for the right reasons.”

Prime Minister Anthony Albanese (left) and Opposition Leader Peter Dutton leave at the end of a parliamentary church service to mark the opening of the parliamentary year in Canberra

The tax changes will see people earning less than $150,000 receive a larger tax cut, while those earning above that amount will still receive benefits, but less than previously predicted in the original phase three proposal.

Mr Albanese had indicated he would like to see the changes to tax cuts passed by the Federal Parliament before Easter, before coming into effect in July. New economic analyzes showed that voters in the hands of national parliamentarians were expected to benefit most from the changed policy.

Findings from the Australia Institute showed voters in Nationals-controlled electorates would each get a $326 tax cut, while those in Liberal seats would be $226 better off. Voters in government-owned electorates would receive an additional $229 per person, according to the modeling.

The institute’s senior economist Matt Grundoff said the majority of taxpayers would come out winners as a result of the tax changes.

“National Party voters will be the biggest beneficiaries, at a cost of $451 million in the next financial year, as the benefits of the revised cuts flow disproportionately to poorer rural voters,” he said.

“Redistributing the bulk of tax cuts to low- and middle-income earners will help those who are hurting the most, while preserving the progressive nature of our tax system.”