Global markets have just set off an alarm that Prime Minister Anthony Albanese and Treasurer Jim Chalmers cannot ignore when they have to choose between sound economics and safe politics in the October 25 budget.is a reminder of the power of financial markets to take down a policy by delivering a simple verdict in a language everyone understands – money.Investors not only dumped the pound but stopped buying government bonds at the height of the crisis last week.
But nobody wants to be the next Julia Gillard or Tony Abbott, either. The former Labor prime minister broke her election promise on a carbon price and the former Liberal prime minister broke his promise to avoid spending cuts in health and education. What happens to Albanese if he breaks his promise on the tax cuts?The financial turmoil sends Albanese and Chalmers into a political whirlpool. They cannot wave away the size of the Commonwealth debt or the growing cost of the loan repayments .
This might lead federal cabinet ministers to stick with the stage three tax cuts or at least postpone a decision until a later budget. After all, the cuts do not start until 2024 and can be reconsidered in the budget next May, the mid-year update at the end of next year or even the budget in May 2024.
Some cabinet ministers believe it is too late to change the tax cuts. In their view, a promise is a promise. The fact that workers on more than $180,000 receive about half the entire tax cut by dollar value – a finding from the Australia Institute – has not changed this. For these ministers, it is not about whether the tax cuts are fair but about whether they were an election pledge.
CroweDM Why is there so much angst over modest tax cuts for hardworking mums and dads. We spend billions on welfare. Its time the taxpayers who pay for this welfare get to keep a little more of their earned money. Fantastic that AlboMP is standing by his word! tax
CroweDM How about just doing the job he is being paid to do and forget about his legacy. Park the ego then do the job you asked the people of Australia to give you. No excuses.
CroweDM I think AlboMP wants to be competent. We wait to see if he will achieve this
CroweDM Liz Truss ..has had all of a few weeks as PM …if she were an incompetent man , she’d be given at least a few years to be crucified Sure her politics stink but no go for Truss
CroweDM god you people spruke rubbish. You ensure your outlet remains in the bin.
CroweDM See no 18 if this get passed it will be rolled out all over Australia doctors jailed for 3 years for not spruking the pharma line what have we become !!!
CroweDM It doesn’t end. The MSM run by Conservative lickspittles throw out this rubbish. Where was the examination of Morrison, who led the most corrupt govt in our history. Imagine working for these rags and calling yourself a journalist.
CroweDM old ALP leaders are keeping quiet .........hopefully
CroweDM This nothing, NOTHING like Gillard or Abbott, and will be a real test for AusPol journos and media outlets. Will they cover this maturely if the reversal is enacted, or will they jump on the bandwagon with loud haulers, amplifying voices of a Coalition who bled the country dry?
CroweDM Good thing he’s Albo then, cause that’s all we need him to be
CroweDM David is lying here. The uk tax cuts were completely different to the stage 3 cuts. To compare them as equivalent is fraud, but entirely predictable for someone like him.
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