New stage 3 tax cuts to pass parliament after opposition announces support for policy

The federal opposition will support the government's changes to stage 3 tax cuts after weeks of criticising the new policy.

Following a Coalition party room meeting this morning, Opposition Leader Peter Dutton announced today the Liberals and Nationals will vote in favour of the overhaul that will provide more relief for low and middle-income earners than the previous iteration of the cuts.

While supporting the policy, Dutton continued to attack the government and Prime Minister Anthony Albanese over previous promises to maintain the stage 3 cuts as originally legislated.

READ MORE: World may have already passed 1.5 degrees of warming

"The Coalition will not stand in the way of providing support to Australians doing it tough," he said.

"We are supporting this change not to support the prime minister's lie but to support those families who need help now."

The opposition will reportedly attempt to amend the legislation for the reworked tax cuts to push it closer to that intended by the previous Morrison government, but will not vote against it if the amendments are rejected, as is expected.

Albanese had previously committed to the Turnbull/Morrison-era tax cuts, but recently opted to rework them, saying the economic context had changed.

Recent polling has shown up to about two-thirds of voters support the changes, which Albanese said give the average Australian a tax cut of more than $1500 a year.

READ MORE: King Charles diagnosed with cancer

Independent MP Allegra Spender also announced her support for the legislation today, pointing to strong support within her electorate of Wentworth even though many voters there will be personally worse off than they would have been under the original stage 3.

"My consultation with the Wentworth community has shown widespread support for the government's changes," she said.

"Of the nearly 1700 people who responded to our community survey, more than two-thirds backed the decision to re-shape the tax cuts, including many people who will be worse off as a result.

"So many people have spoken to me about how they're struggling with cost-of-living pressures and these changes will give them support when they really need it."

READ MORE: Five teens charged over fatal stabbing of Queensland grandmother

The opposition's support for the tax cuts means they will pass parliament without the government needing to get crossbench support – including from the Greens – in the Senate.

The Greens had previously called for stage 3 cuts to be abolished, and had indicated they would not support the new policy, saying it is still too generous to high-income earners.

READ MORE: Man scales high-rise building in Melbourne without harness

Under the changes, the second tax bracket will be cut from 32.5 per cent to 30 per cent, applying up until someone earns $135,000.

Previously the second tax bracket only extended until a taxpayer earned $120,000.

The threshold for the top tax rate of 45 per cent will be increased to $190,000, up from $180,000.

The changes will take place, as previously scheduled, on July 1.