Newspoll results: Aussies back Anthony Albanese on stage three tax cuts, despite no improvement to Prime Minister’s approval rating

A new poll has revealed how Australians really feel about Labor’s decision to scale back Phase Three tax cuts – as Anthony Albanese’s approval ratings fail to improve.

The latest News Poll conducted by The Australian found that 62 percent of voters believe Mr. Albanese did the right thing by reworking legislative tax cuts.

Up to 38 percent of voters said they would benefit from the move, which halved the benefit for those earning more than $180,000 to give a boost to low-income earners.

The poll of 1,245 Australians revealed that the majority thought it was the right decision, while 29 per cent of those polled believed the prime minister was wrong.

However, Mr Albanese’s personal approval ratings did not improve after the decision – which saw Labor return to parliament two weeks early to hold a caucus meeting and break a key election promise.

A news poll has revealed how Australians really feel about changes to Phase Three tax cuts (pictured is Anthony Albanese with partner Jodie Haydon)

A news poll has revealed how Australians really feel about changes to Phase Three tax cuts (pictured is Anthony Albanese with partner Jodie Haydon)

Up to 38 per cent of voters in a recent Newspoll said they would benefit from the reworked phase three tax cuts (pictured, CBD workers in Sydney)

Up to 38 per cent of voters in a recent Newspoll said they would benefit from the reworked phase three tax cuts (pictured, CBD workers in Sydney)

Labour’s primary vote improved by just one point, while the two-party preference contest between the Labor government and the opposition coalition was split 52-48 in Labour’s favour.

This figure remains unchanged since the last Newspoll six weeks ago.

The head-to-head battle between the prime minister and opposition leader Peter Dutton remains at 56-35 in Mr Albanese’s favour.

Labour’s primary vote was up one point to 34 per cent, pulling it clear of the Greens, which fell to 12 per cent,

The Coalition has a primary vote of 36 per cent, while One Nation is up one point to seven per cent.

Independents and minor parties remain stable at 11 percent.

The poll of 1245 voters was conducted between 31 January and 3 February.

Parliament will resume on Tuesday, with the government planning to introduce legislation to replace the phase three tax cuts with a new model that would shift $84 billion in tax cuts from higher earners to lower earners.

The Reserve Bank of Australia will also meet on Tuesday, with interest rates likely to be kept on hold.

About 18 percent of voters surveyed believed they would be worse off because of the broken election promise.

The Newspoll also revealed that female voters (65 percent) were significantly more likely to support the tax cuts while the 50-64 age group supported the change the most.

The 18-34 age group was least in favor of the amended tax cuts.

More than 11.5 million taxpayers are expected to be better off under Labor’s changes, while around 1.1 million people earning more than $150,000 will receive only half the original, promised tax cuts.

The phase three tax cuts plan to shift $84 billion from high-income earners to low-income earners and will take effect on July 1.

Just 18 per cent of voters said they would be worse off as a result of the reworked tax cuts (pictured, Mr Albanese and Ms Haydon at the Lodge in Canberra)

Just 18 per cent of voters said they would be worse off as a result of the reworked tax cuts (pictured, Mr Albanese and Ms Haydon at the Lodge in Canberra)

Mr Albanese insisted on Sunday he was an ‘honest man’ as he defended Labour’s changes to the tax cuts which have been heavily criticized by the Coalition.

‘I am an honest person. I’m up front,’ Mr Albanese told the ABC’s Insiders programme.

“What I’ve done here is to be very, very clear. And I listened to people who all say, who all say to me, ‘Well, what are you doing about cost of living? What are the measures you can put in place?'”

About 85 percent of taxpayers earning between $50,000 and $130,000 will get $804 more than previously promised.

Those with the most to lose if Labor’s changes get through the Senate with cross-bench support are people earning more than $190,000, who will see their tax savings cut in half from $9,075 to $4,529.

Mr Albanese had previously promised during the election campaign that he would make no changes to the tax cuts.

The biggest loser from the revised tax plan could end up being the federal budget, especially if future coalition governments introduce further cuts for higher earners.

Mr Albanese is expected to face accusations from the coalition in parliament this week that he lied to voters, after committing before the last election not to change or scrap phase three.

This is despite the fact that Mr. Dutton indicated last Friday that the coalition would not stand in the way of the tax cuts.

He said the Liberals were “the party of lower taxes” but added the final position would be decided in a party room meeting on Tuesday.

The Coalition could swing the bill through, could try to introduce amendments to restore parts – or all – of the original phase three tax cuts in addition to Labour’s changes, or could block it altogether.

Mr Albanese insisted on Sunday he was an 'honest man' as he defended Labour's changes to the tax cuts which have been heavily criticized by the Coalition.

Mr Albanese insisted on Sunday he was an ‘honest man’ as he defended Labour’s changes to the tax cuts which have been heavily criticized by the Coalition.

Labour’s revisions will mean incomes between $18,200 and $45,000 will be taxed at a lower rate of 16 per cent.

The 30 percent bracket will be expanded to cover incomes between $45,000 and $135,000, and the 37 percent bracket will remain for incomes between $135,000 and $190,000. Above that, a rate of 45 percent will apply.

The Grattan Institute said that while Labour’s tax cuts would overwhelmingly benefit taxpayers, they would limit significant overhauls to the wider tax system.

“These tax cuts will also make it more difficult for the government to make other growth-promoting tax reforms, such as raising the GST to finance cuts to other, less effective taxes,” the institute said.

‘Such reforms usually cost the budget revenue as extra money is paid out to compensate the losers.

“The commitment of both major parties to big income tax cuts now means that there will be less money in the future to ‘buy’ more worthwhile reforms.”

Opposition Leader Peter Dutton has indicated the Coalition will not stand in the way of tax cuts for low- and middle-income Australians

Opposition Leader Peter Dutton has indicated the Coalition will not stand in the way of tax cuts for low- and middle-income Australians