Treasury officials will be asked to explain how changes to tax cuts won’t spike already high inflation as voters indicate support for Labor’s new plan.

Nearly three in five voters across all demographics support changing stage three tax cuts so that people earning less get a greater slice of the pie.

Asked by the Australia Institute in late January, 58 per cent of voters supported middle-to-low income earners benefiting more from the proposed tax changes.

Only one in four coalition voters and a third of Australians earning more than $200,000 a year wanted to keep the policy as originally legislated by the Morrison government.

Far fewer respondents supported repealing the tax cuts entirely, with almost a third saying they weren’t sure or didn’t know.

Richard Denniss, executive director of the Australia Institute, said it was an indication voters in all tax brackets in the 1017-strong survey recognised the original scheme as “bad economic policy”.

Richard Denniss says the government is responding to the current economic reality. (Mick Tsikas/AAP PHOTOS)

“Australians need the government of the day to respond to our current economic realities. That is what the government has done,” Mr Denniss said.

Under the tweaked scheme, tax relief has been redistributed so benefits are skewed toward lower and middle-income earners, with a benefit of around $1500 for someone on $73,000 a year.

Those in higher tax brackets will now get $4500 in relief each year – halved from $9075.

The opposition is still deciding whether it will support the package in parliament but has attacked the government for breaking an election commitment.

Opposition finance spokeswoman Jane Hume will haul treasury officials before a parliamentary committee and press them on whether Labor’s changes will be inflation neutral, as cited.

“We want to make sure that we understand exactly what the details are of this legislation, exactly how it won’t be inflationary,” she told Seven’s Sunrise on Wednesday.

“That is why my cost-of-living committee has called a hearing into these tax cuts next week so they can show us the numbers that determine that outcome.

If you speak to any economist that simply doesn’t seem right.”

Labor frontbencher Amanda Rishworth pointed to treasury analysis, saying the government wasn’t covering up any impacts of the tax cuts.

“It’s very detailed, we’re not hiding anything,” she said.

“It will not add to inflation, but will give cost-of-living relief to those Australians that are doing it tough at the moment.”

Independent teal MPs like Allegra Spender, who represent some of Australia’s wealthiest electorates, are still canvassing their constituents.

Independent member for Wentworth Allegra Spender

Allegra Spender will outline her vision for tax reform at the National Press Club. (Lukas Coch/AAP PHOTOS)

But Ms Spender maintains the government should have a broader conversation on tax reform and will expand on her points when she and Dr Denniss address the National Press Club on Wednesday.

However, analysis from the Parliamentary Budget Office requested by the Greens suggests it would still disproportionately benefit the rich.

In the first year of the new tax cuts, the top 20 per cent of Australian earners will receive 50 per cent of the benefits – about $11.7 billion – while the bottom 20 per cent will collect $100 million or 0.4 per cent of the savings.

Those who earn over $180,000 per year will have taken one quarter of the entire $318 billion package by 2034.

Analysis has also found women will receive 42 per cent of the benefits, while men get 58 per cent.

Share.