Australia Institute says its plan would let government lift jobseeker payment while still improving budget bottom line

• Get our morning and afternoon news emails, free app or daily news podcast

The stage-three tax cuts could be renovated to save the budget up to $130bn while still delivering bigger tax cuts to 80% of income earners, according to the Australia Institute.

The progressive thinktank has released a report modelling four alternatives to the controversial tax cuts, finding they could save between $70bn and $130bn. Those savings are enough to lift the jobseeker payment to the rate of the age pension while still making a net improvement to the budget bottom line.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup