By James Glynn
SYDNEY--Australian Prime Minister Anthony Albanese is expected to seek support to adjust already-pledged income tax cuts at a meeting of his parliamentary Australian Labor Party colleagues on Wednesday, retargeting the cuts more fully toward low- and middle-wage earners.
The so-called stage-three income tax cuts, which are set to be delivered in July, have attracted widespread criticism for how they benefit high-income earners at a time when lower-income earners are being battered by a cost-of-living crisis.
"We understand that Australians are under pressure, and we're providing support through the plan that I'll take to the party room this afternoon, which is focusing on middle Australia," Albanese told reporters in Canberra.
The changes are understood to already have the support of senior ministers in the government.
Still, Albanese is taking a calculated risk by changing the structure of the tax cuts, as it opens him up to allegations that a key election promise has been broken.
The next federal election is expected in early 2025, with support for the Labor government falling over recent months due to the pain of rising interest rates and growing evidence of a slowdown in the economy.
Australians have been feeling the sting of the biggest surge in inflation since the 1980s in the last few years, which has brought with it a sudden and dramatic rising in mortgage interest rates.
Write to James Glynn at james.glynn@wsj.com
(END) Dow Jones Newswires
01-23-24 2018ET
