Anthony Albanese calls an emergency meeting with Labor MPs to tackle the cost of living

Anthony Albanese has recalled Labor MPs to parliament almost two weeks earlier than expected to urgently tackle the cost of living crisis.

The Prime Minister has called for an emergency meeting in Canberra at 4pm on Wednesday afternoon.

Parliament is not scheduled to resume until February 6.

It is understood the Labor Party will discuss ways to ease financial pressure on Australian families, such as cutting energy bills, without increasing inflation.

The government's $3 billion Energy Bill Relief Fund, which expires in June this year and was signed by the state and federal governments, is reportedly one aspect that Labor wants to expand.

The bill will reduce electricity bills for more than five million households between July last year and June 30, 2024.

It comes after Mr Albanese confirmed that he will keep his promise and move forward with phase three tax cuts of up to $9,075 a year for hardworking Australians.

It's understood the Labor Party will discuss ways to ease financial pressure on Australian families amid the cost of living crisis (stock image)

On Wednesday, Mr Albanese told an Adelaide radio station that the “tax cuts will happen in July. That's what we're committed to…we haven't changed our position.”

The tax cuts, passed by the previous coalition government, will create a single tax bracket for workers earning between $45,000 and $200,000 a year.

Workers with taxable incomes above $45,000 will benefit from the tax cuts, but high-income workers will likely receive the highest gains.

With the new tax cuts, those earning $100,000 will save $1,375 in taxes, while those earning $150,000 will save $3,975. Those with an income of $180,000 can save $6,075 and earners with an income of $200,000 will save more than $9,000.

Those at the other end of the spectrum with an income of $40,000 will see no difference in taxes under the new policy.