SYDNEY (Reuters) – The Australian government will push ahead with plans to pass its reshaped tax cuts bill, that aims to give low-income earners more breaks while trimming benefits to the wealthy, as the parliament resumes on Tuesday for the first time this year.
The centre-left Labor government has been promoting the new tax policy, unveiled last month, saying it would benefit more Australians. But the opposition has criticised Prime Minister Anthony Albanese for breaking an election pledge that he would not modify the tax policy, legislated by the previous conservative government in 2019.
Albanese defended the shift in policy citing cost of living pressures as households struggle with high inflation. Under the new policy, more people will fall into lower tax brackets from July 1 and tax cuts for the wealthy would likely halve, with the savings redirected to those on low incomes.
“It’s the right decision done for the right reasons at the right time. And that’s what we’ll be advocating in the parliament,” Albanese told reporters in Canberra on Tuesday.
Some Australian media reported the conservative opposition coalition has agreed to back the tax cuts legislation with a formal announcement expected later on Tuesday.
Labor, which does not have a majority in the Senate, needs the support of coalition or the Greens party, which has been pressing for more cost-relief measures.
Albanese is trying to lift his approval ratings with his promise of higher tax breaks for the majority of Australians as his Labor party battles to retain the federal seat of Dunkley in a by-election set for March 2.
A Newspoll survey for The Australian newspaper out on Monday showed 62% of voters supported the government’s decision though Albanese’s ratings remained largely unchanged. On a two-party preferred basis, Labor led the opposition 52-48%.
(Reporting by Renju Jose in Sydney; Editing by Michael Perry)
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