Albanese’s tax cut gamble and what it means for the next election

Australian Prime Minister Anthony Albanese says his about-face on the stage three tax cuts was made because of “changing circumstances” and for the “right reasons”. But his public commitments to keep them ahead of the last election will come back to haunt him. Labor is calculating that the risk is worth it.

“At some stage over Christmas, Labor decided they needed to make a significant gesture towards the middle of Australia and this was it,” says political editor Phillip Coorey.

This week on The Fin podcast, Coorey discusses the government’s gamble on the stage three tax cuts, why it will dominate this year’s political agenda and whether the improving inflation outlook means there could be an early election.

Explore the big issues in business, markets and politics with the journalists who know the inside story. New episodes of The Fin are published every Thursday.