So Prime Minister Albanese has finally determined the Morrison era ‘Stage 3” tax cuts were not in the best interests of the country. It’s not hard to argue that they never were, but we’ll leave that to those far better qualified to make the case, such as Greg Jericho in The Guardian.
While most of the media is reminding us that Albanese’s change of heart is in fact a broken promise (and let’s be no doubt here – it is), they then go on to discuss why the change of mind is in fact a good idea for most Australians. The reason is simply that most Australians will now get a tax cut and the tax cuts are now structured towards those who need the ‘help’ far more. You could argue the person on $200,000 a year who needs the Coalition tax cut to manage the payments on the investment rental and put fuel in the new Ram truck to tow the big boat might suffer as a result – but you don’t need a investment rental or a Ram truck to survive. Those on lower incomes might argue that they can now afford to buy medicine, pay the rent or put petrol in the car.
The thing is that in essence the pre-pandemic era tax cuts legislated by the Morrison Government were made in an economic time completely different to the circumstances we find ourselves in today. The economy hadn’t taken hits from the pandemic, the Russian invasion of Ukraine or the current Palestine/Israel almost war just to name a few. There is a saying attributed to various people including Winston Churchill and John Maynard Keyes that suggest ‘When the facts change, I change my opinion. What do you do sir?’ Let’s face it we all change our minds when presented with new information, whether it be the route we take to work, the brand of breakfast cereal we consume or moving on from our ‘forever’ home due to circumstances we can’t control.
As probably expected, Opposition Leader Dutton is screaming from the rooftops that Albanese’s yet to be legislated changes to the Stage 3 tax cuts is tantamount to treason. According to Dutton, Albanese should call an election so the people can decide and implying the world will end when the tax change become effective on July 1. His claims are not justified of course, and the argument could be made that at the last election was lost by the Coalition despite the ‘rock solid’ promise to implement the Stage 3 tax cuts.
Albanese is certainly not the only one to break a political promise. John Howard’s ‘core’ and ‘non core’ promises still rankles some. Tony Abbott’s first budget was a litany of broken promises from the election that was held months earlier. And in 1993, Paul Keating went to an election suggesting tax cuts were L.A.W. as they were legislated, only to reverse the legislation after the election. We all survived Abbott’s and Keating’s broken tax promises, Dutton (who was in Abbott’s government) should be uncomfortable in demanding a higher standard of ‘promise keeping’ from the other side of politics than he accepts from his own side. After all – to quote another saying – ‘the standard you walk past is the standard you accept’.
In reality, apart from the politics of giving something to more people, Albanese has a lot of good reasons for breaking a promise. Given the changes in the economy, there is a far greater concern that a lot of the population is struggling to make do, let alone get ahead. Bringing more fairness and equity into the tax system should always be applauded, and others have argued that the ‘Stage 3’ tax cuts were always a political gift to the Coalition that could be used until they were implemented to bash the ALP around in the polls.
Which gets us back to politics and political promises. We elect our leaders to navigate unforeseen issues in the future for our country based on their and their political party’s past performance. Arguably Albanese, Abbott and Keating to name a few broke political promises for what they consider to be good reason after being advised by experts in their field. We should really be applauding them for having the courage to say that they have been given new information and adjusted their outlook to compensate.
Certainly we could have a discussion about the equity and fairness of the broken promises, as unlike Albanese’s changes to the legislated tax cuts, Abbott’s seemed at the time to be more about the Coalition’s habit of kicking people while they are down – but that’s another discussion altogether.
Regardless you have to feel sorry for Dutton. The ‘Stage 3’ tax cut bogyman has been finally killed off and all he can do is complain about a broken promise – while ignoring the long list of Coalition Prime Ministers that did the same thing for arguably far less altruistic motives. It must be uncomfortable sitting astride that particular barbed wire fence.
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