Workers will get $928 a year back at tax time if Labor wins the next election, with Opposition Leader Bill Shorten promising to almost double the coalition's tax cuts.
Labor is also promising to scrap up front fees for 100,000 TAFE students to get more Australian apprentices into work, and uncap university places.
Mr Shorten used his budget reply speech on Thursday night to announce he will support the government's planned $530 offset for low- and middle-income earners.
But he's promised to go further if elected.
"We will support the government's tax cut this year - and in our first budget, we will deliver a bigger, better and fairer tax cut for 10 million working Australians. Almost double," Mr Shorten told parliament.
"In our first term of government, a teacher on $65,000 will be $2780 better off under Labor - an extra $928 a year."
The plan will give $350 refunds to people earning $25,000, rising to $928 for people earning up to $90,000.
Above that, the refund tapers down to $140 for people earning $120,000 a year.
Mr Shorten also promised to restore Sunday penalty rates, crack down on wage theft and sham contracting.
He said Labor will pay down the national debt faster, rather than give a tax cut to big corporations.
"This isn't the time to blow everything because of a short-term economic upswing, that would be an act of generational folly," he said.
"It might not be fashionable, but it's time to be responsible."
Mr Shorten said Labor will scrap up front fees for 100,000 TAFE places in high priority industries, to make sure locals are trained to meet job demand.
"I don't want Australia to meet these needs with skills visas. I want to train our people for these jobs," he said.
Labor is banking on its changes to negative gearing, dividend imputation and capital gains tax to pay for their promises, as well as their decision not to match the government's corporate tax cuts.
The opposition leader also announced a $2.8 billion fund to improve hospitals and reduce elective surgery waiting lists, starting in Tasmania.
He challenged Malcolm Turnbull to campaign on his company tax cuts in the upcoming five by-elections sparked due to the citizenship crisis.
