Federal budget with ‘modest but meaningful’ tax cuts sets up election clash in ‘uncertain world’

Labor will take Australians to an election within weeks, with income tax cuts emerging as an unexpected battleground after the Coalition immediately rejected the government’s $17 billion budget centrepiece. With a warning that “storm clouds are gathering” from the US president’s coming tariffs, weaker Chinese growth, an ongoing war in Europe and collapsing peace in the Middle East, Treasurer Jim Chalmers on Tuesday promised to cut the 16 per cent tax rate to 15 per cent next year and 14 per cent in mid-2027. The “modest but meaningful” cuts, according to Mr Chalmers, mean workers earning an average $79,000 a…