Labor brings budget tax cuts to Parliament, wedging Coalition
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The news: Labor has attempted to wedge the Coalition by rushing the federal budget’s tax cuts package before Parliament.
The numbers: The plan would see the tax bill for a worker earning over $45,000 cut by $268 in 2026-27, and $436 in 2027-28.
The context: In a surprise move on Wednesday morning, Treasurer Jim Chalmers introduced Labor’s $17 billion tax cut package to Parliament, the day before Opposition Leader Peter Dutton will deliver his budget reply.
Chalmers described the legislation as “another important step” towards bringing down inflation while reducing the tax burden for working people.
But the move was also designed to force the Coalition to follow through with its plan to vote against the measure, which will benefit every taxpayer once it is rolled out over the next two years, on the eve of the federal election.
The Coalition confirmed it would oppose the proposal, which Opposition treasury spokesman Angus Taylor dismissed as a “small coin donation” to Australians struggling with cost-of-living pressures.
Speaking after his treasurer, Prime Minister Anthony Albanese launched an impassioned defence of his government’s “cohesive” economic strategy, which he argued had reduced inflation while seeing real wages rise.
“Once again, [this is about] having a tax cut for every Australian taxpayer, not just some,” he said.
While Chalmers did unveil one major reform on Tuesday, a ban on non-compete clauses, some economists warned he did not do enough to address structural issues in the budget.
What they said: “To stand in the way of this legislation is to vote for higher taxes on Australian workers,” Chalmers said on Wednesday.
The source: The Sydney Morning Herald
