Modern Australian
The Times

Why should we still be surprised when a PM doesn’t keep his word?

  • Written by Michelle Grattan, Professorial Fellow, University of Canberra

All prime ministers break promises. But there are some whose breaches go into the history books – and Anthony Albanese has just joined that group.

Tony Abbott famously pledged no cuts to health, education or the ABC. That took out (unneeded) insurance before the 2013 election.

Julia Gillard said she wouldn’t introduce a carbon tax. A reassurance for a tough contest in 2010.

Who can forget John Howard’s insistence there would “never ever” be a GST. It was calming, but deceptive, in the run up to the 1996 poll.

Paul Keating’s L.A.W. tax cuts showed even promises enshrined in law can be flaky.

That’s the story of the stage 3 tax cuts. Labor reluctantly supported the Coalition legislation for them. Albanese pledged unequivocally to retain them if he won office. It was all part of the small target strategy.

Soon after the election, Treasurer Jim Chalmers tried to recalibrate stage 3. Albanese said no. He felt his integrity was on the line. He has kept reiterating ever since that the government’s policy on stage 3 hadn’t changed.

Regardless of his personal views, Chalmers has been defending those cuts and saying there are other ways to help people with the cost of living, despite the urging from economists and some interest groups for them to be reshaped.

Read more: Why Australian workers' true cost of living has climbed far faster than we've been told

Now, virtually overnight, the policy has changed, under the weight of both the cost-of-living crisis and, importantly, the shadow of a byelection in the Melbourne seat of Dunkley, held by Labor on a margin of about 6%.

The government will pare back the cuts for the high income earners and use the funds to increase the benefit for lower and middle income earners, including giving relief to those earning less than $45,000 who would have received nothing otherwise.

A special caucus meeting was called to be briefed late Wednesday, followed by drinks (stiff for a few no doubt) at The Lodge. Albanese will argue his full case at the National Press Club on Thursday. The changes will have to be legislated but the Senate numbers are there.

There are always reasons, or wriggle room, to be found when explaining broken promises. The Abbott government argued it was just cutting future projections for health and education spending. Some in Labor maintained Gillard’s carbon price scheme was not really a “tax”.

Albanese can insist circumstances have changed, that middle Australians are hurting (as they were, incidentally, last year when stage 3 was still sacrosanct).

He said on Wednesday: “There are pressures of cost of living that, according to Treasury analysis and according to common sense, have most impacted low- and middle-income earners.

"Since 2019, there has been a pandemic, there has been a recession, there has been global inflation, there has been not one war, but two wars that have had an impact.

"But I’ll be very clear in accepting responsibility for policies put forward by my government. That’s what I do.”

Commentators will say that stage 3 is unfair and bad policy, and it’s more important to get the policy right than stick to your word.

How will the public react? Some voters will say: we need the help, never mind the promise thing, politicians are like that. Others will be losers by virtue of the changes, or will think worse of the prime minister for going back on his word.

How those two camps fall out in net terms is impossible to judge at this point.

RedBridge’s Kos Samaras, judging the likely implications, maintained in a Wednesday post, “Breaking a promise to assist people with the affordability crisis is unlikely to have any significant political repercussions for the federal Labor government.

"Only a small percentage, approximately 3.4%, of Australians earn over $180,000 annually, which is primarily found in Teal, Greens, and inner urban Labor-held constituencies. Despite having high earning potential, these voters are not typically swayed by financial incentives when casting their ballots. Instead, they tend to have a broader perspective and prioritise other concerns.”

Breaking a significant economic promise does carry wider implications for a government – for instance in how the business community and investors regard its word on a range of other undertakings.

For Albanese there is a deeper question: will this broken promise damage people’s view of his integrity in the longer term? Their broken promises undoubtedly harmed Abbott and Gillard (although neither survived long enough to be judged at a subsequent election).

Certainly whatever Albanese promises in 2025, for a second term, will need to have several grains of salt added.

Last year, Albanese made much of keeping his pledge to Indigenous Australians to run a referendum on the Voice. That could have ended in triumph but turned into disaster.

This year he is trashing what was also a central promise. The stakes are high, the outcome uncertain.

Albanese’s action will reinforce people’s existing low trust in the word of the political class. Actually, the surprise in this story is that we can still be surprised when a prime minister breaks his word. How often do we forget the history? Cynical as it sounds, perhaps the real surprise is that it took this long for Albanese to do so.

Authors: Michelle Grattan, Professorial Fellow, University of Canberra

Read more https://theconversation.com/view-from-the-hill-why-should-we-still-be-surprised-when-a-pm-doesnt-keep-his-word-221860

Diesel Shortage to Impact Trades and Contractors

Strait of Hormuz blockage affecting all major parts of trades and construction Trades and construction across residential, commercial and industria...

Why Holiday Home Owners Turn to Rental Management Agents

The Allure — and the Reality — of Renting Out Your Property Owning a holiday home is a dream for many Australians. Whether it's a beachside sha...

Why Finding Reliable Doctors In Bundoora Is Important For Long-Term Health

Access to quality healthcare plays an important role in maintaining overall wellbeing and managing health concerns early. Trusted Doctors in Bundoor...

Understanding the Different Types of Car Services: Minor vs Major

When it comes to car maintenance, one of the most important things every vehicle owner should understand is the difference between a minor and a maj...

How Superannuation and TPD Insurance Work Together

Superannuation is an essential part of financial planning in Australia. It is designed to provide individuals with income during retirement, helping...

Tiny Towns funding granted for Mt Hotham and Mt Buller upgrades

Alpine Resorts Victoria (ARV) has welcomed funding support from the Victorian Government’s  Tiny Towns Fund, with both Mt Hotham and Mt Buller se...

Locksmith Services: Why Professional Security Solutions Matter More Than Ever

Security is a critical concern for homeowners, businesses, and vehicle owners alike. Whether it involves protecting a property, replacing damaged lo...

Why Tooth Fillings Are Important For Protecting Damaged Teeth

Cavities and minor tooth damage are common dental problems that can worsen if left untreated. Professional tooth fillings help restore damaged teeth, ...

The Connection Between Visibility and Driver Confidence

Operating a vehicle safely requires an immediate, uncompromised stream of visual information from the surrounding road environment. A driver's decis...

Important Things To Know Before Starting An SMSF Setup

Planning for retirement requires careful financial decisions, and many Australians are now looking for more direct control over how their superannua...

Why Retail Cleaning Plays a Key Role in Customer Experience and Business Success

Professional retail cleaning services are an essential part of maintaining a welcoming, safe, and professional environment for customers and staff...

Simple Ways to Make a Commercial Property More Appealing to Buyers

Selling or leasing a commercial property isn’t just about listing the square metres, taking a few photos and waiting for the right person to appea...

What Café Owners Should Know Before Upgrading Their Display Setup

A café display fridge does a lot more than keep cakes cold and sandwiches fresh. It quietly shapes the way customers browse, the way staff move beh...

Creating a Backyard That Feels Comfortable All Year Round

A great backyard doesn’t need to be huge, expensive or perfectly styled. Most of the time, the spaces people actually use are the ones that feel e...

How Homeowners Can Make Smarter Energy Decisions Before Upgrading

Energy upgrades used to feel like something you only looked into after a power bill gave you a nasty surprise. These days, though, more homeowners a...

Why Retail CX Breaks During Peak Sales Events and How to Prevent It

Retail customer experience has become one of the most important drivers of revenue growth, especially during high-intensity sales periods. However, ev...

15 South Indian Dishes Everyone Should Try

If your only experience of "Indian food" is butter chicken and garlic naan, South Indian cuisine is going to feel like discovering an entirely new c...

What Every Homeowner Should Know About Roof and Drainage Maintenance

A home's roof and drainage system work together every day to protect the property from water damage. While many homeowners focus on visible areas such...