The Albanese government is poised to announce a major tax break for working Australians as a cost-of-living relief measure in the next budget.  

Treasurer Jim Chalmers is considering green lighting an “earned income offset” up to $300 for every taxpaying wage or salary earner, The Australian reports.  

The measure would apply only to earned income and exclude investment gains.  

Labor is looking at raising further cash from tax breaks and incentives for property investors, including the CGT break and negative gearing policies.  

It is also preparing to crack down on family trusts. 

It comes as the government is keen to be seen as shifting taxation to assets over wages and address “intergenerational” inequities. 

However, the government has been warned by the International Monetary Fund (IMF) to resist the urge to provide further stimulus to the economy.  

The Reserve Bank of Australia (RBA) has also hoped for “rock solid” fiscal support for its efforts to beat down inflation.  

Investment advisory boss Tom Gardner told Sky News on Tuesday he would rather see the asset tax crackdown without additional tax breaks for earners.  

“I’d rather see all those changes made and no tax cuts,” the Motley Fool CEO said.  

He joked he was not being “Mr Popular” with his position.  

“We need to do two things: We need to get the budget back under control and we need to do everything we can to get inflation down,” he continued.  

“If you’re going to give people money, give it to them later, once inflation has been solved. 

“The reality is, the political pressure is they’re going to have to be seen to be doing something on cost-of-living … and if they don’t, the Opposition jump all over them. 

“There’s a political reality to it. I don’t think any economist is going to say, whatever else you do in the budget, don’t give this money out.” 

Mr Chalmers reinforced his government’s big pitch ahead of the May 12 budget on Monday in Canberra. 

“We’ve already got tax cuts coming. We’ve got a tax cut coming on July 1, another one coming on July 1 next year,” he said. 

“A big part of the budget will be more than $2.5 billion we’re spending on the fuel tax cut, and we’ve got the standard deduction coming as well. 

“So, I’ve seen some speculation about tax cuts. I would just remind everyone that this is a government cutting taxes, cutting income taxes. 

“We’ve done it once, we’ll do it two more times, and the standard deduction will provide a bit of additional tax relief as well. That’s already in the system.”