Balanced budget needed for tax cuts: PM

Personal income tax rates could come down in the next few years depending on the government's efforts to balance the budget, says Malcolm Turnbull.

Prime Minister Malcolm Turnbull speaks at the SA Liberal Division Budget Lunch at the Hilton Hotel, Adelaide, Tuesday, May 16, 2017. Source: AAP

Prime Minister Malcolm Turnbull says there may be scope for personal income tax cuts in the "next few years".

Labor says any lowering of tax rates would need to wait until the federal budget returned to surplus.

"If we are able to lower tax over the next few years, personal income tax, we would do so - but clearly our primary obligation in this area is to make sure that we don't throw a mountain of debt onto the shoulders of our children and grandchildren and that is why we have to bring the budget back into balance," Mr Turnbull told reporters in Brisbane on Thursday.