Limestone Coast residents are optimistically waiting to learn whether the Federal Government will backtrack on its election promise to implement stage three tax cuts for high income earners.

Given the current cost of living crisis, Prime Minister Anthony Albanese is widely tipped to broaden the cuts, in a bid to ease the financial strain being felt by low and middle income earners.

Labor went to the 2022 election backing stage three, which would result in the vast majority of Australians paying no more than 30 cents in the dollar in income tax.

However, Prime Minister Albanese will today address the National Press Club and outline the government’s rumoured changes, after Labor MPs were recalled to Canberra yesterday to discuss the proposed cuts.

The initial plan would have seen a person earning $90,000 a year save about $1125, rising to $3975 for someone earning $150,000, while a worker on $200,000 would save $9075.

However, a person earning $50,000 would only save about $125.

If the government ditched the current proposal to raise the top tax bracket from $180,000 to $200,000, it would save about $3.6b a year.

However, it appears likely the government will alter those brackets with the savings then used to lift the tax-free threshold from the current $18,200.

Speculation has been swirling all week after reports that Prime Minister Albanese was considering breaking the election promise by altering or abandoning the cuts for people earning more than $180,000.

Capital city media have latched onto the Prime Minister’s refusal to rule out the changes, despite his office insisting there were no current plans to alter the proposal.

The speculation was fuelled further when the Prime Minister said “everyone would get a tax cut” while being interviewed on radio.