Labor favours surplus over more tax cuts

The opposition has reportedly decided against further tax cuts in favour of a bigger budget surplus to prove its economic management credentials.

Bill Shorten with shadow treasurer Chris Bowen.

Labor leader Bill Shorten and his shadow treasurer Chris Bowen will focus on a budget surplus. (AAP) Source: AAP

Labor will promise a bigger budget surplus than the coalition instead of further tax cuts for middle income earners, to promote its economic management credentials.

The Sydney Morning Herald and The Age report the opposition had been considering a last-minute tax reform package for workers earning between $90,000 and $120,000.

But instead, Labor has decided to focus on the budget bottom line, which it believes will allow it to "burn" the coalition over the question of budget responsibility

Opposition Leader Bill Shorten did not confirm or deny the decision when asked about it on Thursday.

He instead ramped up his attack on cuts to services Labor believes the coalition would need to make to fund the later stages of its tax cut plan.

"This government is addicted to cuts," he told reporters in Darwin.

Labor has vowed to match the government's tax cuts for people earning up to $125,000 in its first term if it wins the election, and offer more tax relief to lower-income earners.

But the party would not go ahead with the later stages of the coalition's tax cuts, which would be fully rolled out in mid-2025.

The coalition argues lower-income earners would get a better deal than they would under Labor once its plan is completely rolled out.

Mr Shorten says the changes are unfairly beneficial to the "top end of town".

He has also continued to spruik analysis from the Grattan Institute showing the government would need to cut spending to the tune of $40 billion by 2030 to pay for its later tax cuts.

That comes after years of cuts, he argues, with treasurer-turned-prime minister Scott Morrison at the helm.


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2 min read

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Presented by Yang J. Joo

Source: SBS News, AAP




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