Stage 3 tax cuts: Anthony Albanese faces pressure from all sides as calls for an election grow

The Albanese Government will be pressured to dish out even more support for low and middle-income earners during high-stakes negotiations on its revamped Stage 3 tax cuts.

The Greens will fight for extra relief for struggling households in exchange for backing Labor’s overhauled tax package in the Federal Parliament.

Prime Minister Anthony Albanese said the rejigged tax package was “sensible” – but is open to talks with the crossbench.

Debate on the Government’s decision to break a key election promise and overhaul the Stage 3 tax cuts has shifted to the mechanics of getting it through parliament before July 1.

Labor is attempting to wedge the Coalition on the issue, challenging Liberal leader Peter Dutton and his colleagues to support the changes or risk being seen as opposing tax relief for hard-working Australians

More than 11.5 million people will receive a bigger tax cut under Labor’s plan, which redistributes the benefits of the original Morrison Government package from high-income earners to those earning under $146,500.

Workers earning between $50,000 and $130,000 will get an extra $804 per year, whereas those on $200,000 will have their promised tax cut halved to $4500.

“Peter Dutton and the Liberals and Nationals can choose between bigger, fairer, better tax cuts for more people or their current position which is higher taxes on middle Australia to fund an even bigger tax cut for people on the highest incomes already,” Treasurer Jim Chalmers said.

Mr Dutton is refusing to rush to a position as he focuses on attacking Mr Albanese for breaking an election promise to leave the tax cuts untouched.

“I just think most Australians don’t want a Prime Minister who looks them in the eye, tells them one thing, and then does completely the opposite,” Mr Dutton said on the Today Show.

If the Coalition opposes the legislation, the Government will need the support of the Greens and two independents to get it through the Senate.

The Greens have long called for the tax cuts legislated in 2019 to be scrapped entirely because the benefits were skewed to higher-income earners.

The Greens still believe the “reheated” package is unfair, comparing the $4500 per year tax cut for people on $200,000 to the $15 per week that someone on roughly $44,000 will receive.

Leader Adam Bandt said Australians were ”entitled to expect more from Labor than just being slightly less crap than Scott Morrison”.

“Our view is that if we’re going to change what was a fundamentally unfair package to start with, then we should make it fair,” Mr Bandt told ABC’s RN Breakfast.

Asked if the Government was open to making changes to win the support of the Greens and crossbench, Mr Albanese noted the Coalition hadn’t ruled out backing Labor’s changes.

But he confirmed the Government would talk with “all of the crossbenchers”.

Continuing his defence of the broken promise, Mr Albanese said the changes were “sensible” and “well calibrated”.

He ridiculed Mr Dutton’s call for a snap election on the issue, pointing out the earliest date for the next poll was August – a month after the tax cuts are due to start.