Prime Minister Anthony Albanese has doubled down on his assertion the government’s position hasn’t changed on income tax cuts. 

Speculation has continued that the government was considering changes to stage three tax cuts, due to come into effect in mid-2024.

Treasurer Jim Chalmers was accused by the opposition of laying the groundwork for changes to the legislated cuts during the week, warning of dire economic circumstances.

But in Perth for the opening of a new airport line at the city’s central rail station on Sunday, Mr Albanese said the position on the cuts had not changed.

While concerns have been raised about the tax cuts adding to ramping inflation, the prime minister said the budget, due to be delivered in two weeks, would consider the current economic headwinds.

“They are due to come in in 2024,” he told reporters.

“We are producing a budget in October 2022.”

Mr Albanese said the government was working to complement the Reserve Bank‘s policy to ensure inflation could be kept under control.

“At that time fiscal policy should work in concert with (monetary policy) not against it,” he said.

Resources Minister Madeleine King also stood by the cuts, adding it was alright for the community to have a discussion about tax policy.

“Obviously there is a conversation going on in the community … but right now this government is not planning any changes,” she told Sky News.

But Shadow Treasurer Angus Taylor wants the prime minister to categorically rule out any future changes.

“We need to see Anthony Albanese ruling out dropping the tax cuts,” he said.

Mr Taylor said any changes would constitute “a war on aspiration”.

“This is about middle Australia making sure they can earn or keep more of what they earn. 

“We’re seeing extraordinary inflationary pressures right now and we know with inflation, the average Australian pays a higher rate of tax. 

“These tax reforms were designed very carefully to make sure there was an incentive for Australians to get out there to have a crack.”

Opposition Leader Peter Dutton said Mr Albanese needed to honour his commitment to preserve the cuts.

“The prime minister promised on multiple occasions he wouldn’t step back from it and it seems he is still contemplating it between now and the next election,” he told the ABC’s Insiders.

“That would be an unforgivable and a ridiculous mistake.”

He said the coalition would honour its commitment to the cuts if it comes to power.

“We went to the last election with a promise (to support the tax cuts) and I’m not in the business of breaking promises,” he said.

“We will take a policy to the next election and if we are successful in government, we will honour it.”

By Dominic Giannini in Canberra

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