TRANSCRIPT
Discussions around stage three tax cuts have prompted two groups - those selling the idea, and those opposed.
Prime Minister Anthony Albanese is among those pitching the idea to Australians.
"This is the right decision being done for the right reasons we have put forward what is a calibrated, sensible package. It has the same costs across the forward estimates, but it is a better package being put forward."
From July 1, the tax cuts for higher income earners will be decreased and redistributed to workers earning under $150,000, with high income earners to receive only half of the proposed tax cut.
An average income earner will receive an 800 dollar tax cut under the new plan.
It will also give the government 28 billion dollars more in revenue over the next decade.
Finance Minister Katy Gallagher has joined the Prime Minister in praising the plan.
"We've again thought about this carefully. Our plan actually deals with bracket creep. It particularly does it right throughout the income scale. So we have a very broad view of aspiration. We want people to work more and earn more and this plan does that. But importantly from the first of July, it gives people more money in their pockets, you know, 11 and a half million Australians will get a bigger tax cut. And that's what's been motivating us it's about cost of living and people before politics."
Those on the other side of the discussion believe the federal government has lied to Australians, because the original plan promised a larger tax cut for higher income earners.
Deputy Opposition Leader Sussan Ley has criticised the change of policy.
"This has to be undone with legislation. This is already legislated. And that's a key difference between some of the things that people have been comparing this with. It's really important to understand that and the other thing is you if you're struggling today, there's nothing in this announcement that's going to help you today. Prices are going up. There's no economic plan to tackle the fact that all around us prices are going up. Your mortgage is going up, your groceries are going up. It's so tough to meet that rising cost of living right now."
Opposition Leader Peter Dutton has reiterated that message, adding he expects the Prime Minister has lost the trust of the public.
"Just a major break of trust, it's a betrayal. And the prime minister promised this on over 100 occasions. This is not just some throwaway comment that he made at a press conference because my word is my bond and continue to repeat it. 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 has even called for an early election, but Mr Albanese says that would be impossible.
"Well the earliest selection is August 2024 So you work it out. The tax cuts will take place on July 1. Peter Dutton will always go for the politics. This is about people not politics."
Despite the outrage, Peter Dutton won't say whether the Coalition will support the legislation.
If opposed, Labor will need to the support of the Greens and two crossbenchers.
But Greens leader Adam Bandt has called for further changes to ensure low and middle-income earners get greater financial relief.
That's something the Prime Minister says he's open to discussing.
