Prime Minister Anthony Albanese has asked Australians to "trust me to make the right call, not the easy call", after backflipping on an election promise to uphold the Coalition's stage three tax cuts.
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The Prime Minister was grilled at Thursday's National Press Club speech over whether he lied to the Australian public over upholding the former government's policy, which would have seen a $9000 tax break to those earning at least $200,000 a year.
Asked whether he feared the move could cost him the prime ministership, Mr Albanese said changing the policy was the "responsible thing to do" and that his government was "unashamedly" helping those in the middle-income bracket.
"We're being very up front with the Australian people that when economic circumstances have changed, it is the responsible thing to do to change our policy. And we are changing our policy for the right reasons," he said.
ACM, publisher of this masthead, understands the Prime Minister tasked the Department of Treasury and the Department of Finance with developing solutions to the cost-of-living crisis around Christmas, the advice of which was delivered to cabinet's Expenditure Review Committee on Monday this week.
The Prime Minister on Thursday said he had spent the summer talking to members in the community about rising cost-of-living pressures, including "restaurants here in Canberra".
"I go out there and I talk, and when low- and middle-income earners are saying that they're under financial pressure, we have a responsibility to do something about it, not just to wring our hands and say, 'Well that's difficult, but I can't do anything about it'," he said.
"I accept this is not an easy decision, to make. The easy option is to kick the can down the road. This is the right decision done for all the right reasons. And as Prime Minister I will always do what I believe is in the national interest."
Mr Albanese also hit back against the idea he had intentionally misled voters at the last election, and that the backflip would hurt his integrity.
"My integrity, I'll tell you what, my integrity is: not looking at low and middle income earners and saying, 'Sorry, I'm just the Prime Minister, I'm not in a position to help you' when I know that I am in a position to help you," he said.
"And that's what this plan does."
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Labor's changes will shift benefits to low- and middle-income earners, and women, delivering a bigger tax cut to 11.5 million (or 84 per cent) of Australian taxpayers than under the Coalition's proposal.
While those earning more than $150,000 a year will still receive a tax break, it will be less than originally slated. The Coalition's promised $9075 cut for those on $200,000 or more will be slashed in half.
Mr Albanese reiterated cabinet only changed its position on whether to implement the Coalition's stage three tax cuts when they met on Tuesday, and took the change to a caucus vote the next day.
He also shouted out those in the public service who provided advice on the change, telling reporters "you get better decisions when you involve more people".
"We also involved the capacity of the public service that we treat with respect, and received their advice, went through it," he said.
Justine Landis-Hanley
I'm a federal politics and public sector reporter at The Canberra Times, with an interest in integrity, regulation, and social services. Contact me with tips and feedback at justine.landishanley@canberratimes.com.au.
I'm a federal politics and public sector reporter at The Canberra Times, with an interest in integrity, regulation, and social services. Contact me with tips and feedback at justine.landishanley@canberratimes.com.au.
