Sunrise host Nat Barr interrogates Jim Chalmers about his relationship with Anthony Albanese after reports of a feud

Jim Chalmers has denied any rift between him and Anthony Albanese after being grilled by Nat Barr about their relationship following the broken promise of phase three tax cuts.

Reports circulated that the Prime Minister was unhappy with Mr. Chalmers because he had to take the blame for breaking his promise not to change the tax cuts.

When asked about the state of their relationship on Monday morning, the treasurer said the two were still ‘good mates’.

‘There is a report this morning that Anthony Albanese is annoyed to take the fall for you about this broken promise. How is your relationship with the PM?’ Barr asked.

‘Very close and effective working relationship. We are good mates, we had dinner last night, we had breakfast at The Lodge not so long ago,’ replied Mr Chalmers.

Natalie Barr grilled Jim Chalmers on Sunrise over reports he had a fight with Anthony Albanese

Natalie Barr grilled Jim Chalmers on Sunrise over reports he had a fight with Anthony Albanese

“We talk almost daily, I’ve seen those stories and they’re absolute rubbish.”

Barr then asked if Mr Albanese was “a bit angry” with Mr Chalmers about the consequences of changing the tax cuts.

“Is he a little mad though?” Barr said. “The whole ‘my word is my bond’ thing keeps being brought up?”

“No, he isn’t,” said Mr. Chalmers.

‘He put people before politics, he did something meaningful and tangible to help people with living costs and that’s what matters.

‘We are good mates and we have a close and effective working relationship.

“I’ve seen those stories and they’re wrong, completely wrong, it’s rubbish.”

Jim Chalmers has denied any rift between himself and Anthony Albanese after being grilled by Nat Barr about their relationship following the broken promise of tax cuts in phase three.

Jim Chalmers has denied any rift between himself and Anthony Albanese after being grilled by Nat Barr about their relationship following the broken promise of tax cuts in phase three.

The coalition passed the phase three tax cuts in 2019 through parliament and Mr Albanese has repeatedly promised that no changes will be made.

He has since reworked the original plans to halve the benefit for Australians earning more than $180,000 in favor of a boost for lower earners.

Among the big winners under Labour’s clawback are those on $45,000 a year, who will now get up to $805 off their tax bill rather than nothing, which they would have got under the Coalition legislation.

And the 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 Aussies earning more than $200,000, who will see their tax savings cut in half from $9,075 to $4,529.

The move sparked outrage with opposition leader Peter Dutton calling for an immediate election.

It also led to reports citing Labor sources that Mr. Albanian and Mr. Chalmers’ relationship is on ice.

One Labor insider wrote that the prime minister’s relationship with the treasurer has been ‘shredded’ due to the policy abuses – to the extent that the two do not even speak to each other.

On the policy change, Mr Chalmers said the government had a responsibility to find a better way to deliver cost of living relief.

“There’s a recognition that at the end of the day it’s not about the political argy-bargy,” he said on the breakfast show.

‘This is about a government trying to give a bigger tax cut to help with the cost of living.’