'Are you still the party of lower income tax?': Angus Taylor grilled over Coalition's promise to repeal tax cuts as election looms
Shadow treasurer Angus Taylor has been grilled over the Opposition's rejection of Labor's tax cuts in a heated interview as the Liberals are faced with the tag of being the party of higher taxes in the lead up to the election.
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5 | Angus Taylor slams Labor saying the party has ‘trashed the budget’ |
Shadow Treasurer Angus Taylor has slammed Labor saying the party has “trashed the budget”.
Shadow treasurer Angus Taylor has been grilled by Sky News host Laura Jayes over the Coalition's rejection of Labor's new tax cuts and whether it will commit to lower income taxes.
The Coalition has vowed to oppose Labor's new tax package unveiled in the federal budget, labelling the changes a "cruel hoax" which do not adequately address the rising cost of living.
The Opposition has since confirmed it will repeal Labor's tax cuts and instead slash the fuel excise by 25 cents to offer immediate financial relief for families struggling with petrol bills.
However, the Coalition's proposal will only return an average of $14 to households which is barely an increase on Labor's measly $5 a week in tax cuts.
Speaking to Sky News Australia ahead of Opposition Leader Peter Dutton's budget reply, Mr Taylor was pressed on whether the Coalition was "still the party of lower income taxes".
“We are the party of lower taxes, and bringing down the excise for hard-working families in south-western Sydney," the shadow treasurer told Jayes.
"But right across Australia you’ve got hard-working families, often double-income families, travelling long distances to work, to drop off kids at school and sport and so on, who have huge fuel bills - they are struggling.
"This is the group that are struggling the most under mortgage stress, huge financial pressures, and frankly, they are the ones that should be targeted and it should be immediate."
Mr Taylor criticised the government's tax cut pledge, which will return about $5 per week to taxpayers over the next year, claiming it shows there will be a "permanent cost of living crisis under Labor".
Jayes suggested it would be difficult for the Coalition to go into the federal election essentially promising higher taxes, as she continued to quiz the shadow treasurer on whether it was still the party for lower income tax.
"We are the party of lower, simpler, fairer taxes," Mr Taylor swiftly replied.
Jayes interjected: "I’m talking about income".
Mr Taylor replied and hit out at the government over plunging Australia into $1 trillion of debt in the 2025-26 forecasts.
“Let’s talk about income taxes. Stage one, stage two and stage three ultimately changed and butchered by Labor," he said.
"The fact of the matter is Labor has trashed the budget, so everything has to be done with a view to responsibility with making sure that it’s temporary."
Australia has among the highest personal income tax rates compared to other G20 economies, with the top marginal rate sitting at 45 per cent.
But despite opposing the tax cuts, Mr Taylor insisted the Coalition still upheld the mantle of the party of lower taxes.
He was also pressed on whether the Opposition would be "brave" in this election campaign and propose meaningful and structural economic reform.
"So what about bracket? I mean, when you talk about income tax and structural reform, how brave are you going to be here?" Jayes asked.
But Mr Taylor dodged the question and instead suggested a Dutton government would "beat inflation".
"That's what good economic management does and that's absolutely what Labor has failed to do because we've seen inflation in this country stay higher for longer under a Labor government," he said.
Under Labor's tax changes, every Australian taxpayer will receive a new tax cut of up to $268 in 2026–27, or $5 per week, and up to $536 in 2027–28, relative to the existing tax settings.
The Coalition has argued more targeted relief is necessary, whereas the government's new tax package is a year down the track.
The halving of the fuel excise, which will cost $6 billion and remain for only 12 months, is set to save families $14 a week to fill up a 55 litre car, saving them just over $700 a year.