Albanese Reassures Tax Cuts Amid Cost-of-Living Relief Expectations

Despite concerns, the Prime Minister hints at more relief for middle-income earners without affecting the top end.

Anthony Albanese, the Prime Minister, has reassured that everyone will be getting a tax cut, hosing down speculation that stage-three tax cuts will be trimmed to pay for cost of living relief.
Despite some Labor MPs expressing concern about abandoning the election commitment to stage-three tax cuts, Albanese hinted that middle-income earners would be given more cost of living relief, which might not come at the expense of the top end.
The Greens have warned that stage-three tax cuts will add to inflation by injecting $20.7bn into the economy in their first year while failing to compensate low- and middle-income earners for bracket creep.
Albanese has continued to raise expectations of further cost-of-living relief as some backbench MPs debate the possibility Labor could modify stage-three income tax cuts to pay for new measures.
The tax cuts, passed by the Morrison government in mid-2019 with Labor support after it failed to split the bill, begin in July 2024. They remove the $120,000 to $180,000 tax bracket, increase the top tax bracket to $200,000 and reduce the marginal rate of tax for everyone earning between $45,000 and $200,000 to 30%.