Prime Minister Anthony Albanese is being tipped to pay a sizeable political price for winding back promised stage three tax cuts.

Under the plan expected to be approved on Wednesday, those earning around $200,000 will have their tax cut halved, while those earning less will be better off.

Australian Financial Review political editor Phillip Coorey said the broken election promise could come back to bite the Albanese government.

Click PLAY to hear more about the stage three tax cuts 

“I think on balance (Albanese could pay a political price for the tax cut decision),” he said on 3AW Mornings.

“It’s a massively broken promise and it’s not a small thing, he’s said one thing to get elected and now he’s using the old ‘the circumstances have changed’ excuse.”