Australia appears poised to pass a modified tax cuts bill, featuring increased breaks for low-income earners and reductions for the wealthy, as the opposition pledged support following initial criticism of the government’s policy shift. The conservative opposition’s decision coincided with the parliament’s resumption after a two-month recess.

The center-left Labor government introduced the tax policy last month, asserting broader benefits for Australians. However, Prime Minister Anthony Albanese faced opposition backlash for deviating from an election pledge not to alter the tax policy established by the previous conservative coalition government in 2019.

Albanese defended the changes, citing widespread financial pressure on families due to high inflation. The revamped policy, effective from July 1, would place more individuals in lower tax brackets, resulting in likely halved tax cuts for the affluent, with redirected savings benefiting those on low incomes.

Opposition leader Peter Dutton, acknowledging the country’s high inflation, expressed support for assisting struggling families despite accusing Labor of contributing to inflation.

While Albanese aims to boost approval ratings with promises of increased tax breaks, the opposition’s backing signals political shifts. The upcoming by-election on March 2, particularly in the federal seat of Dunkley, adds significance to Albanese’s efforts.

A recent Newspoll survey indicates 62% voter support for the government’s decision, though Albanese’s ratings remain relatively stable. On a two-party preferred basis, Labor maintains a 52-48% lead over the opposition.