The Coalition has agreed not "to stand in the way" of the Albanese government's tax cuts, but vowed to present its own fully costed tax policy to Australians by the next federal election.
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Opposition politicians overwhelmingly agreed not to block the revamp of the stage three tax cuts in a party room meeting on Tuesday morning, but will continue to push the government hard on its broken election promise.
"We're supporting this change not to support the Prime Minister's lie, but to support those families who need help now because Labor has made decisions that have made it much harder for those families," Opposition Leader Peter Dutton told journalists in Canberra.
Mr Dutton did say the opposition would propose amendments to the tax package, but did not give details on what they would be.
"We've got some amendments to make but we'll declare those in the chamber, I think, at the right time."
![Opposition Leader Peter Dutton during question time on Tuesday. Picture by Sitthixay Ditthavong Opposition Leader Peter Dutton during question time on Tuesday. Picture by Sitthixay Ditthavong](/images/transform/v1/crop/frm/143258707/186745c4-0cc8-4c0d-8a1f-5da07a0eea03.jpg/r0_0_4700_2653_w1200_h678_fmax.jpg)
Prime Minister Anthony Albanese on Sunday said he wants the cuts passed by April, however the timing is uncertain, as the Coalition will call for the legislation to be considered by a Senate committee. The package is proposed to come into effect from July 1.
'We will take to the next election a significant tax policy': Dutton
The Albanese government's plan would offer a greater tax cut to everyone earning less than $146,486, than the planned stage three tax cuts. Those earning above that will receive less than they would under the stage three cuts, but will still receive a tax cut.
Mr Dutton said the Coalition would take its own tax reforms to the next federal election.
Mr Dutton said the Coalition would take its own tax reforms to the next federal election: "We will take to the next election a significant tax policy, which will reduce taxes for Australian taxpayers because we know that there is going to be a lot of support needed to help Australian families recover from this period of Labor."
The earliest possible election date, according to the rules, would be August 3, 2024, while the latest would be May 17, 2025.
![Prime Minister Anthony Albanese unveiled the tax cuts last month. Picture by Sitthixay Ditthavong Prime Minister Anthony Albanese unveiled the tax cuts last month. Picture by Sitthixay Ditthavong](/images/transform/v1/crop/frm/143258707/5122eb97-f3d8-45bc-af98-61af0bf4c562.jpg/r0_282_4700_2935_w1200_h678_fmax.jpg)
The opposition's spokesperson for finance, Jane Hume, said she could guarantee a Coalition tax policy implementing "lower, simpler and fairer taxes".
"I can guarantee today that for the next election, the Coalition will have delivered a tax policy that implements lower, simpler and fairer taxes, that enshrines aspiration back into our economy, back into our tax system," Senator Hume said.
"It will be a policy that is fully-costed, that goes through all the right processes, that will deliver on Australians security and guarantee essential services and most importantly, it will be ready to implement the moment we are elected back into government."
"Because we are a party, we are a Coalition and will be government that ... says what we mean, that means what we say and delivers on our promises, unlike the liar in the lodge."
One Coalition source told The Canberra Times that members were of the view that the Coalition needed to agree to the amended tax cuts but prosecute further cuts to deal with cost-of-living pain in the community.
![Prime Minister Anthony Albanese and Treasurer Jim Chalmers during question time on Tuesday. Picture by Sitthixay Ditthavong Prime Minister Anthony Albanese and Treasurer Jim Chalmers during question time on Tuesday. Picture by Sitthixay Ditthavong](/images/transform/v1/crop/frm/143258707/5fe0ee41-f98c-4e10-8f18-80ec14f15796.jpg/r0_240_4700_2893_w1200_h678_fmax.jpg)
Another Liberal source said there was "strong consensus" in the party room and the Coalition would now push the Albanese government "very hard on broken promises".
Another Liberal source told The Canberra Times it was the "right outcome" for the Opposition.
The legislation was introduced in the House on Tuesday morning by the Treasurer Jim Chalmers, who said Labor's plan would recognise that aspiration in Australia "is not and should not be limited to people who are already doing well".
In his first reading speech on Tuesday, Dr Chalmers acknowledged that Labor's plan would be "politically contentious and contested, while pitching the government's tax revamp to "middle Australia".
"This is all about supporting the hard work of people who make our economy and our country strong it's all about supporting people who work hard so that they can provide for their loved ones and get ahead," he told Parliament.
"It's all about doing more than just acknowledging that people are under pressure, it's about doing something about it.
"It's about recognising that aspiration in this country is not and should not be limited to people who are already pretty doing well."
The Treasurer acknowledged that Labor's plan would be "politically contentious and contested", after the Albanese government broke its election promise to uphold the Coalition-era plan.
But Dr Chalmers repeated the government's line that this would be the "right thing to do, for the right reasons and at the right time".