Labor forces Coalition to vote on $17bn tax cuts

Labor’s $17bn tax cut plan passes amid Coalition opposition; election imminent, prompting criticism of modest relief measures.

In Short

Labor’s $5-a-week tax cut plan has passed, facing opposition from the Coalition, which labelled it a “cruel hoax.”

Despite criticism, the bill received backing from the Greens and crossbenchers, promising future relief for taxpayers.

Labor has passed its $5-a-week tax cut plan, compelling the Coalition to vote against what they have termed a “cruel hoax.”

This legislation was introduced by Treasurer Jim Chalmers shortly after the government outlined the cost-of-living budget.

The Coalition promptly announced it would not support the tax cuts, allowing Labor to critique their refusal to back the relief measures before the upcoming election.

Despite opposition, the Bill passed 38 to 26 with support from the Greens and crossbenchers.

The $17 billion plan promises around $5 weekly to taxpayers in 2026-27 and $10 weekly from 2027-28. Chalmers emphasized that opposing the legislation equated to higher taxes for Australian workers.

Election bribe

The Coalition’s response was critical, with Shadow Treasurer Angus Taylor labelling the proposal an “election bribe.”

Following the announcement, Opposition Leader Peter Dutton is expected to propose his own tax cut plan, potentially halving the fuel excise if elected.

While the Greens did not impede the bill, they expressed that the tax cut was a missed opportunity for more significant cost-of-living relief.

Senator Jacqui Lambie supported the bill, believing any relief is better than none.