Sunrise host Nat Barr interrogates Jim Chalmers about his relationship with Anthony Albanese after reports of a feud

Jim Chalmers has denied any rift between himself and Anthony Albanese after being grilled by Nat Barr over their relationship following the stage three tax cuts broken promise.

Reports had circulated that the Prime Minister was unhappy with Mr Chalmers over having to cop the blame for breaking his promise not to change the tax cuts.

When asked about the state of their relationship on Sunrise on Monday morning, the Treasurer said the pair were still ‘good mates’.

‘There is a report out this morning that Anthony Albanese is annoyed to be taking the fall for you over this broken promise. How is your relationship with the PM?’ Barr asked.

‘Very close and effective working relationship. We’re good mates, we had dinner last night, we had breakfast at The Lodge not that long ago,’ Mr Chalmers replied.

‘We speak on an almost daily basis, I’ve seen those stories and they are absolutely rubbish.’

Barr then asked if Mr Albanese was ‘a bit mad’ at Mr Chalmers over the fallout of changing the tax cuts.

‘Is he a bit mad, though?’ Barr said. ‘The whole “my word is my bond” thing keeps being brought up?’

‘No he’s not,’ Mr Chalmers said.

‘He’s put people before politics, he’s done something meaningful and tangible to help people with the cost of living and that’s what matters.

‘We are good mates and we have a close and effective working relationship.

‘I’ve seen those stories and they are wrong, completely wrong, they are rubbish.’

Jim Chalmers has denied any rift between himself and Anthony Albanese after being grilled by Nat Barr over their relationship following the stage three tax cuts broken promise

The Coalition passed the stage three tax cuts through parliament in 2019 and Mr Albanese repeatedly pledged no changes would be made.

He has since reworked the original plans halving the benefit to Australians earning over $180,000 in favour of a boost to lower earners.

Among the big winners under Labor’s backtracking are those earning $45,000 a year, who will now get up to $805 off their tax bill rather than nothing, which they would have got under the Coalition legislation.

And the 85 per cent of taxpayers who earn between $50,000 and $130,000 will get $804 more than what had previously been promised.

Those with the most to lose if Labor’s changes get through the Senate with cross-bench support are Aussies earning more than $200,000, who will see their tax savings cut in half from $9,075 to $4,529.

The move has sparked outrage with Opposition leader Peter Dutton calling for an immediate election.

It has also led to reports citing Labor sources that Mr Albanese and Mr Chalmers’ relationship is on ice.

One Labor insider wrote that the prime minister’s relationship with the treasurer has been ‘shredded’ over the policy backflip – to the extent the pair aren’t even speaking to each other. 

Speaking about the policy change, Mr Chalmers said the government had a responsibility to find a better way to deliver cost of living relief.

‘There is a recognition that this at the end of the day is not about the political argy-bargy,’ he said on the breakfast program.

‘It is about a government that is trying to give a bigger tax cut to help with the cost of living.’