‘Greedy’ tax cuts must go: Lambie

Anthony Albanese is facing fresh calls to dump a scheduled tax cut for the wealthy, with a key crossbencher claiming the public won’t care if he breaks a promise to keep them.

Jacqui Lambie, who holds a crucial balance of power vote in the Senate, made no secret of her opposition to the tax cuts when asked on Tuesday.

“I’ve made it very clear that those stage 3 tax cuts need to be staggered,” she told ABC’s RN.

The tax cuts, due to come into effect from July 1 next year, will abolish the 37 per cent marginal tax rate for those earning more than $120,000.

It will also cut the 32.5 per cent tax rate to 30 per cent for people earning between $45,000 and $200,000.

The Tasmanian raised concerns that people earning between $120,000 and $130,000 were struggling with rising interest rates.

But she said people who were on higher salaries, such as her $217,060 base pay, shouldn’t get a handout.

“People like me do not need a tax cut, I can assure you, so please don’t give me one because I don’t want one and anybody else that’s in the situation that I am shouldn’t be so greedy,” she added.

“You’ve got to pay it forward. That’s what we need to be doing, and that’s where Australia should be.”

Mr Albanese and Treasurer Jim Chalmers have repeatedly shut down changes to the stage 3 tax cuts ahead of the May budget.

“Our position on the tax cuts hasn’t changed,” Dr Chalmers stressed

Asked if she believed the public would accept Labor reneging on its promise, Senator Lambie said she “didn’t think the public is really going to worry about it too much”.

The cost of the tax cuts has blown out from $11bn to $254bn over the next decade since announced by then treasurer Scott Morrison.

Senator Lambie said should the government scrap the tax cuts, some of those funds could be redirected to pay for the nuclear-powered submarines, estimated to cost up to $368bn over the next 30 years.