Australia

Govt, Labor no closer on tax plan deal

Federal Labor doesn't appear any closer to backing the Morrison government's tax plan. (AAP)

Federal Labor doesn't appear any closer to backing the Morrison government's tax plan with just over a week until the new parliament sits.

With just over a week to go before the new federal parliament sits, Labor appears no nearer to supporting the Morrison government's personal income tax reduction plan in full.

While Labor backs the first stage of the plan aimed at low and middle income earners, due to come in from July 1, the sticking point is stage three that doesn't come in until 2024.

Labor's Pat Conroy says that with the economy significantly slowing, unemployment rising and retail sales plummeting, stage one needs to be passed urgently.

He says Labor has asked Josh Frydenberg for more detail on stages two and three of the $158 billion tax plan, but the treasurer has failed to deliver.

"When we get that information, we'll consider it in a careful process and make a decision," he told ABC television on Saturday.

The government says it has provided all the information that is needed to pass the plan and is refusing to split the bill.

Liberal MP Julian Leeser says people voted for the return of a coalition government and as such want to see the government's tax package implemented.

"You want to give people certainty and confidence to plan for the future. That's what our tax package does," he told the ABC.

"This is a test for Mr Albanese as to whether he's actually turned over a new leaf and whether he has got the message from the election that Australians want lower taxes."

However, Mr Conroy doesn't believe the government has a mandate on the tax plan.

"The government only took one election policy and that was that they're not Labor," he said.

An analysis by Nine newspapers says middle- and high-income earners will face some of the highest tax rates in the English speaking developed world unless the government's tax plan is passed in full.

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