Michael Pascoe: Morrison heeded the Tooth Fairy when Treasury warned against tax cuts

Treasurer Jim Chalmers appears to be setting the stage for a walk-back from the tax-cut package. Photo: AAP

In 2018 when Scott Morrison was announcing his tax-cut package, the Treasury set out the grounds for scrapping Stage Three:

“Accounting for the proposed tax cuts, Government net debt is projected to fall to zero over the medium term, providing a strong fiscal buffer for Australia. The underlying cash balance is projected to record surpluses through to the end of the forward estimates and build steadily to 1 per cent of GDP by 2026-27.“