Peter Dutton has had a very tense conversation with ABC’s Insiders presenter David Speers about the hugely controversial phase three tax cuts.
Speaking on Sunday morning during the show, the opposition leader became so frustrated with Speers’ interruptions that he said, “I don’t know what kind of game you’re playing.”
The 2024/25 tax cuts were approved by the previous coalition government and would replace the 37 percent rate for those earning between $120k and $180k with a 30 percent rate for anyone earning between $45k and $200k.
But Labor is under heavy pressure to drop the austerity measures amid advice the country cannot afford to continue.
The Australian Parliamentary Budget Office estimated that they would cost $243 billion in 10 years.
Mr Dutton is using Labor’s difficulties to his advantage and has sought to heighten tensions between Prime Minister Anthony Albanian and Treasurer Jim Chalmers.
“What we have seen this week is a real rift between the Prime Minister and the Treasurer and the Treasurer has shown his inexperience,” said Mr Dutton.
Opposition leader Peter Dutton has sought to fuel tensions between treasurer Jim Chalmers (pictured left) and Prime Minister Anthony Albanese (pictured right).
“(Mr Chalmers) has spun a certain argument and I think the Prime Minister wisely refrained from it.”
Dutton said the debate “isn’t about tax cuts, but whether you can trust Anthony Albanese and the Labor Party, and they still have … the prospect or the option of returning the key promise they made in the last election.” to turn’.
His attack on the government follows Mr Chalmers who says his stance on the tax cuts has not changed, but that it must exercise good economic management.
“No responsible government can ignore high and rising inflation, a deteriorating global situation or the fact that we have this ongoing structural pressure on the budget,” he said.
“My job, as treasurer of this country, is to ensure that the budget is as sustainable as possible to meet the challenges we expect.
“If there’s one determinant in the budget that I’m handing over in less than three weeks, it’s responsible economic management.”
Labor went to federal elections in May and pledged to keep phase three tax cuts.
“Australians would be surprised that Anthony Albanese was about to betray them or that they might do that in the next budget or the one after that,” said Mr Dutton.
Speers explained to the opposition leader that “someone of $80,000 would get $900 (tax cut under phase three). Someone of $200,000 gets $9,000…
“Would you support a change to reverse the size of the tax cut at the top?” he asked.
Mr Dutton said the Liberal-National coalition ‘went to the last election with a promise and I’m not breaking any promises’.
“The Prime Minister can think about it. He looked the Australian public in the eye and it seems he wasn’t that sincere,” added Dutton.
“I want the Prime Minister to keep his promise and not lie to the Australian people.”
Speers infuriated Mr Dutton by accusing him of hedging his bets on whether the coalition would restore the phase three tax cuts when it returns to power if Labor drops them now.
“I don’t know what game you’re playing,” he said.
“Of course I am (support the tax cuts in phase three), and I couldn’t be clearer about that.”
Mr Dutton said: Labor had supported the legislation in parliament and that Mr Albanian “promised several times that he would not step down”.
He said that if Labor were to drop or amend the statutory tax cuts, it wouldwould be an unforgivable and ridiculous mistake’.
Mr Dutton did admit that the coalition did not implement the 2019 tax cuts when they were announced because the budget was in deficit, but said the country would need stimulus measures by 2024 if a global recession breaks out in the meantime.
He said the coalition’s fiscal management is justified by how the economy has recovered from the Covid-19 pandemic.
“If you look at where we are with low unemployment in 50 years, if you look at the strength of the underlying indicators here in Australia, it’s a very stark contrast to where the UK or US budget is,” he said. .
Peter Dutton (pictured) had a tense exchange with ABC host David Speers on Sunday morning
“This government has inherited a very strong position after nine years of Coalition management, and you could see that the Labor Party instinct about taxes and economic policy is all wrong.”
Daily Mail Australia has contacted Mr Albanian and Mr Chalmers to request comment on this story.
A new top marginal tax rate of 45 percent would apply to those earning more than $200,000, giving them a tax credit of $11,640 per year