Greens call out Labor over deficit levy

The Greens say Labor voted against their amendment to make the budget deficit levy permanent but is now changing its tune.

The Greens have called out Labor on its decision to back an extension of the temporary budget deficit levy on high-income earners.

Ahead of Bill Shorten's budget reply speech on Thursday, in which he will pledge Labor to keeping the two per cent levy, the Greens have reminded the opposition it previously voted against a move by the minor party to make the measure permanent.

"Look at the track record of the Labor Party - it's been feeble and hypocritical on this issue," Greens senator Peter Whish-Wilson told reporters in Canberra.

The Greens will discuss how the levy can be extended beyond its legislated expiry date of June 30.

"In the spirit of Labor adopting another Greens policy we'll be happy to work with them and the crossbenchers to come up with a solution," Senator Whish-Wilson said.

The government refused to extend the levy in Tuesday night's budget.

Deputy Prime Minister Barnaby Joyce said the measure was always meant to be temporary and the coalition was raising the Medicare levy to fund the national disability insurance scheme.

"To do that we need a wide pool of funds because it is a massive cost," he said.

Senator Nick Xenophon backed the original Greens amendment, saying those earning more than $180,000 a year should be helping reduce the deficit.

"We've still got a deficit for a few more years," he said.

Liberal Democrat David Leyonhjelm believes Mr Shorten is struggling to find something to announce because the government has "stolen" all his policies.


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Source: AAP



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