With a recession looming and rate hikes hurting hip pockets, a fight over tax cuts is ramping up as Labor prepares to deliver its first budget in almost a decade.
Government ministers have consistently stood by legislated stage-three tax cuts, which will largely benefit high-income earners.
But there is now speculation the government is considering changes to the tax plan amid worsening economic circumstances.
Finance Minister Katy Gallagher said the government hadn’t changed its policy but did not deny that a shift was being discussed.
“We haven’t changed our position on stage three, but we are being upfront about some of the challenges facing the budget,” she told ABC radio….