Bombshell revelations Jim Chalmers ‘tested the waters’ on changing phase three tax cuts – as Australian workers await cash boost this year

Treasurer Jim Chalmers’ staff reportedly “tested the waters” with Treasury Department officials on what the evolving Phase Three tax cuts, set to begin this year, would look like.

The Albanian government has repeatedly assured voters that it has no plans to change policies designed to put more money into the pockets of high earners.

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.

Despite repeated assurances from both Prime Minister Anthony Albanese and Dr Chalmers, a report from Capital short suggests that the treasurer at least considered the move at some point.

The Albanian government has repeatedly assured voters that it has no plans to change policy – which will put more money in the pockets of high earners.

The publication reported this week 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.

The third-stage tax cuts will eliminate the 37 percent tax bracket and reduce the current 32.5 percent tax bracket to 30 percent.

People making $100,000 will take home an extra $1,375, while people making $180,000 will be $6,075 better off.

But the Morrison-era tax cut has not been without controversy

While some earners in these tax brackets are happy with the policy, others say the government would be better off if they introduced policies that help people under greater financial pressure.

The tax cuts will cost the government more than $300 billion over the next decade.

But Labor pledged at the election not to make any changes to the policy, putting another $9,075 in the pockets of ambitious voters earning more than $200,000.

“Governments of both political persuasions should, if they can afford to, try to return some of these creeps if they can,” Dr Chalmers said in December.

And this week, Mr Albanese said government policy remained the same.

“I know there’s an ongoing debate about the impact of those tax cuts,” he said. ‘We are in favor of tax cuts.’