Albanese and Chalmers’ Stage 3 tax cut battle forming as Greens join the fray with PBO analysis

Greens leader Adam Bandt has launched into Prime Minister Anthonty Albanese’s Stage 3 tax cut overhaul, highlighting Parliament Budget Office analysis that reveals how the lowest 40 per cent of income earners would receive less than 10 per cent of the benefits of the redesigned plan.

The independent analysis, commissioned by Mr Bandt’s party, comes with Liberal leader Peter Dutton still holding off on a position for or against the reformed cuts, instead preferring to sharpen his attacks on the PM’s credibility on the tax pledge backflip.

Mr Albanese and his Treasurer Jim Chalmers are are this week touring the country attempting to sell the redesigned tax package as a major win for “middle Australia”.

One argument is that the new plan is fairer, delivering a tax cut to every taxpayer – not just those earning above $45,000.

That’s despite the new PBO analysis, commissioned by the Greens, showing how higher-income earners will still benefit the most from July 1 onwards.

The analysis found taxpayers earning under $23,800 will receive a combined $100 million in tax cuts in 2024-25 – just 0.4 per cent of the $23.3 billion in overall relief.

In contrast, those earning above $110,000 will share in a combined $11.7 billion – half of all relief.

Under the overhauled tax cut plan those earning more than $200,000 still get a tax cut, but that benefit has been slashed by half from $9000 to $4529.

“The numbers don’t lie. These Liberal-lite tax cuts still benefit the wealthy and leave everyday people behind,” Mr Bandt said.

The Greens, whose support Labor will need if the Coalition opposes the changes, want the Government to roll out extra relief for low and middle-income earners, citing how the lowest 40 per cent of income earners get just 9 per cent of the tax cuts - or a total $28.3 billion - over the 10-year course of the plan.

One proposal is to raise the tax-free thresholds from $18,200.

Meanwhile Opposition leader Mr Dutton has said there were “question marks” surrounding the Government’s new tax package, including its cost, which needed to be worked through before the Coalition decided on whether to waive it through the Federal Parliament.

Mr Dutton cut short his visit to Perth on Tuesday to race back to his flood-ravaged Brisbane electorate, missing a scheduled meeting of shadow cabinet.

Before he left, the Liberal leader launched another assault on Mr Albanese’s tax cuts backflip.

Relying on his own set of Parliamentary Budget Office figures, Mr Dutton said 240,000 West Australians – around 20 per cent of taxpayers – would be worse off when compared with what they would have received under the Morrison Government’s original package.

Labor’s broken promise on the tax cuts has left it facing questions as to whether it might shift position on other politically contentious policies.

Mr Chalmers on Monday said changes to negative gearing and capital gains tax – which former leader Bill Shorten took to the unsuccessful 2016 and 2019 elections – were “not something we have considered or are considering.”

Speaking after his address to a Chamber of Minerals and Energy WA breakfast, Mr Dutton said that “very cute form of words” carried echoes of Prime Minister Anthony Albanese repeating on scores of occasions that Labor had no plans to change the stage three tax cuts.

“There is a lot to play out in relation to this debate and I think Australians have been staggered by the fact that their Prime Minister looked them in the eye and bluntly lied to them,” he said.

Mr Albanese and Mr Chalmers are this week touring the country attempting to sell the redesigned tax package as a major win for “middle Australia”.