Australian Politics LIVE: Second major political setback in phase three tax cuts exposed – as Anthony Albanese prepares to make good on broken promise to Australia

The stage three tax cuts were Morrison-era policies – part of a three-pronged approach – to help struggling Australians.

Phase one introduced a temporary low and middle income tax compensation, while phase two raised tax thresholds and reduced that low income tax compensation.

Phase three, meanwhile, was aimed more at high-income earners, and would have reduced the tax burden on earners up to $200,000 by up to $9,000.

The catch was that low- and middle-income people would see little to no benefit.

The Prime Minister has now adjusted this policy so that high-income earners, namely those earning more than $150,000, receive less tax relief. As a result, these discounts could end up in the pockets of people making less than $150,000.

The fuss is about the fact that the Prime Minister has promised – no fewer than 36 times – not to tinker with the policy that he originally helped to legislate.

In doing so, he has broken an election promise and he does not have the mandate of the people who voted for him under the assumption that he would leave them alone.

But he's betting that many voters won't be too offended, as the majority of Australians will actually be better off.