Liberal moderate Bridget Archer says Labor right to be questioning stage-three tax cuts

Labor ultimately backed the stage-three tax cuts in opposition and committed to delivering the package as legislated during the run-up to the May election. It maintained that commitment in the opening months of the new government.

But over the past week, Chalmers and Gallagher have prepared the ground for potential changes in either the October or May budgets.

The kite flying from Chalmers and Gallagher has prompted public debate among colleagues about whether it is more important to tailor policy to current conditions or to abide by commitments made during the election campaign.

The British government this week abandoned a contentious mini-budget proposal to scrap the 45% top-tier tax rate for those earning more than £150,000 a year and lower it to 40% for everyone earning more than £50,270 on the argument that cutting tax would be growth enhancing. The unfunded tax cuts spooked the financial markets and the proposal was scrapped after an internal revolt.

Gallagher on Wednesday told the ABC the government was looking at the deteriorating economic context internationally and pressures domestically as it finalised the October budget.