Veteran Liberal MP Russell Broadbent has broken ranks with his party, saying the $243 billion stage three tax cuts that will flow to the nation’s highest-paid workers should be abandoned and the money put back into government services.
Prime Minister Anthony Albanese yesterday reaffirmed his pledge to stick with the tax cuts that start in mid-2024. But Broadbent said the government should “bite the bullet” and axe the policy.
Labor has been pressed by some of its own MPs, economists and unions to ditch the tax cuts, which abolish the 37 per cent tax bracket and reduce the 32.5 per cent rate to 30 per cent for all incomes between $45,000 and $200,000.
Over the weekend, this masthead revealed nine of the 19 crossbench MPs and senators favoured scrapping or delaying the tax cuts. Two want to retain them, three are undecided and four did not respond to requests for comment.
Broadbent said the tax cuts, which were made law in 2018 as part of an overhaul of the personal income tax system, reflected a different time and not the financially challenged post-COVID world.