Phase Three Tax Cuts Are a Bombshell: Claims Anthony Albanese Will Radically Tweak Controversial Tax Plan – Here's What It Could Mean for You

Prime Minister Anthony Albanese is reportedly planning to review promised phase three tax cuts, a radio host claims.

Mr Albanese called an emergency meeting of the Labor caucus in Canberra this week to discuss a cost-of-living package.

Radio 2GBChris O'Keefe claimed on Monday afternoon that Mr Albanese will announce a review of his controversial tax plans at the meeting.

This despite years of assurances – some as recently as last week – that his position on the policy had “not changed” since he pledged to fully enforce the policy.

Under the new proposal, “all taxpayers will still receive a tax cut,” O'Keefe claimed.

Many voters would be better off under the reported change, but Australians earning more than $180,000 will be the biggest losers, with their refunds dramatically reduced.

Lower income earners would instead get more aid than promised in the current plan, in an effort to ease cost-of-living pressure on people who feel the pain most directly.

Under the phase three proposal first introduced by the Coalition, Australians earning more than $200,000 would receive the most tax relief: $9,075 per year.

The tax cuts in their current form would cost the government more than $300 billion over the next decade.

But the Morrison-era tax cut – which Mr Albanese said he would maintain before the last election – has not been without controversy.

Left-wing politicians and voters have demanded the government restructure tax cuts to help middle and low-income earners.

Meanwhile, the opposition knows it can benefit from Labour's breaking election promises if even the slightest change in policy is made.

Deputy Nationals leader Perin Davey confirmed this on Monday afternoon, telling Sky News: “If that is what the Prime Minister is doing, he is breaking an election promise.”

Although the Prime Minister has repeatedly said his position on tax cuts has not changed, he has come under increasing scrutiny in recent months as speculation mounted that change was afoot.

Treasurer Jim Chalmers has reportedly 'tested the waters' on the implications of changing the phase three tax cuts due to start this year

Last week, Albanese criticized an ABC presenter for playing “word games” with him.

“Nothing has changed, nothing has changed,” he said. “We support tax cuts.”

He told an Adelaide radio station last week: “Tax cuts will happen in July. That's what we're committed to… we haven't changed our position.

But at the same time, a report surfaced from Capital Brief showing that Treasurer Jim Chalmers' staff had at least “tested the waters” on making changes to the policy.

The publication reported that the Ministry of Finance had rejected a Freedom of Information Act request seeking “modelling, analysis, estimates or correspondence between the Ministry and the (Albanian) Government regarding the impact of the change of phase three on tax revenues or the budget'.

Two separate government documents, prepared between October 2022 and October 2023, were reportedly identified as relevant to the freedom of information quest.

But the request to release them was rejected due to potential 'damage to the effectiveness of the Treasurer's decision-making and consultation processes'.

While these documents do not indicate that the government is currently considering changes to tax policy, they do suggest that the government has at some point considered what adjusting tax cuts might look like.

A spokesperson for the Treasurer told Daily Mail Australia it was standard practice for the Minister to be briefed on all aspects of the budget and future changes.

“It is not unusual or controversial for the treasurer to be kept informed of the costs of upcoming changes to the budget,” the spokesperson said.

Daily Mail Australia has contacted Mr Albanese's office for comment on the claims.