Treasurer Jim Chalmers has been accused of ‘gaslighting’ Australia as the fallout from the government’s decision not to deliver on promised tax cuts in phase three continues.
Prime Minister Anthony Albanese promised at least 36 times before his election that he would make no changes to the statutory cuts introduced by the Morrison government.
But on Wednesday afternoon, Labor MPs gave their unanimous support to a decision to halve the benefit for Australians earning more than $180,000, in favor of a boost for lower earners.
The huge political call was made official on Thursday, with Mr Chalmers forced to defend the decision live on air.
“Have you looked at Australia?” Project host Mel Buttle asked the treasurer.
Waleed Aly questioned the Treasurer about the backlash from the government’s phase three tax cuts
“Of course not,” Mr. Chalmers replied.
“What we have done today is explain to the Australian people why we have come to a different view on these tax cuts.
We’ve come to a different position because we know we can provide more tax relief to more people to help with the cost of living, in a way that’s better for Central Australia, better for young people, better for women, better for truck drivers and teachers and nurses and better for the economy.”
Comedian Mrs Buttle tried to pin the treasurer on the huge backflip again before Waleed asked Aly if he could ‘promise that this is the only promise you will break?’
Mr Chalmers deviated from his question and highlighted the government’s statement that they were ‘putting people before politics’.
Treasurer Jim Chalmers was asked if he was ‘gaslighting Australia?’
The Prime Minister has undoubtedly broken a promise. He hopes voters won’t mind when they realize they’ll get more money back under the new policy
But Aly, who reportedly earns around $900,000, still had time for one final dig.
‘Is political integrity and honesty just a game? he asked.
‘Is that just the political game? Or is it actually something very important?’
Mr Chalmers responded: “It’s important, and in my view it’s about integrity and trust, to say to the Australian people, if you’ve changed your mind, why you’ve changed your mind, it’s about taking responsibility .’
Labor has calculated that the political costs of breaking their promise to the Australian people will be reduced by the fact that almost 11 million Australians will be better off under the new plan.
The changes will give someone earning an average wage of $73,000 a tax cut of more than $1,500 per year.
Those earning $50,000 will receive an additional $929 per year, while those earning $100,000 will receive $2,100.
Households with a median income of $130,000 will receive $2,600.
Those at the top will still see tax cuts, but not as many as previously legislated.
For example, those earning $200,000 would have received $9,075 under the successive phase three tax cuts, but will now receive $4,500.
Mr Albanese told the national press club on Thursday that “all 13.6 million taxpayers will get a tax cut, not just some.”
“Everyone who works and pays taxes will benefit,” he said.
“This is a plan for middle Australia that will deliver results for every Australian taxpayer, up and down the income ladder.”
But opposition leader Peter Dutton has accused him of being a liar.
“The Prime Minister has completely destroyed his credibility with the Australian public,” Dutton told Ray Hadley.