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Labor says it will oppose Coalition's 'economically irresponsible' tax cuts for wealthy Labor says it will oppose Coalition's 'economically irresponsible' tax cuts for wealthy
(about 3 hours later)
Labor will resist pressure to support the government’s $158bn tax cut plan in full, saying it is “economically irresponsible” to offer relief to higher-income earners in a slowing economy. The Coalition has dismissed Labor’s calls for negotiate over its $158 billion tax cut plan, dismissing the opposition’s
Instead, the opposition is calling for immediate economic stimulus, urging the Coalition to bring forward tax cuts for those earning up to $120,000 and “shovel ready” infrastructure projects. has failed to learn the lessons of the election
Following a meeting of shadow cabinet in Melbourne on Monday morning, the Labor leader, Anthony Albanese, said the party had resolved to support stage one of the government’s plan to give a tax cut to low and middle-income earners, but would stay “firm” in its opposition to the final stage that would reduce the tax rate from 32.5c in the dollar to 30c for people earning between $45,000 and $200,000.
in full, saying it is “economically irresponsible” to offer relief to higher income earners in a slowing economy.
Instead, the opposition is calling for immediate economic stimulus, urging the coalition to bring forward tax cuts for those earning up to $120,000 and “shovel ready” infrastructure projects.
Following a meeting of shadow cabinet in Melbourne on Monday morning, Labor leader Anthony Albanese said the party had resolved to support stage one of the government’s plan to give a tax cut to low and middle income earners, but would stay “firm” in its opposition to the final stage that would reduce the tax rate from 32.5 cents in the dollar to 30 cents for people earning between $45,000 and $200,000.
“What we have determined this morning to do is to propose a negotiating position to the government which would bring forward tax cuts faster for those who need it, and importantly those who will spend it, to stimulate demand in the economy,” Albanese said.“What we have determined this morning to do is to propose a negotiating position to the government which would bring forward tax cuts faster for those who need it, and importantly those who will spend it, to stimulate demand in the economy,” Albanese said.
“What we know right now is that the economy needs stimulus. And what we’re looking for here is solutions rather than arguments.”“What we know right now is that the economy needs stimulus. And what we’re looking for here is solutions rather than arguments.”
He said there was a range of road and rail packages that could be brought forward because “they’re ready to go right now”, naming the Melbourne metro project and Linkfield Road in Brisbane’s north as possible contenders.He said there was a range of road and rail packages that could be brought forward because “they’re ready to go right now”, naming the Melbourne metro project and Linkfield Road in Brisbane’s north as possible contenders.
“We’re prepared to sit down with the government and identify projects, some of which were committed to by both sides of politics during the election campaign,” Albanese said. “We know that projects like that are necessary now and we think that a bring-forward of the government’s proposed infrastructure investment would assist the economy, create jobs right now, help to boost productivity into the future.” “We’re prepared to sit down with the government and identify projects, some of which were committed to by both sides of politics during the election campaign.”
Despite public calls from senior frontbencher Joel Fitzgibbon and backbencher Peter Khalil not to stand in the way of the Coalition’s full tax package, Albanese said the shadow cabinet had decided the $95bn cost of the third tranche, due to come into effect in 2024-25, could not be justified in a soft economy. “We know that projects like that are necessary now and we think that a bring-forward of the government’s proposed infrastructure investment would assist the economy, create jobs right now, help to boost productivity into the future.”
“We think that stage three – at a cost of some $95bn down the track ... is really a triumph of hope over economic reality,” he said. “This is a genuine approach by Labor, a constructive approach, and I hope that the government receives it as such.” Despite public calls from senior frontbencher Joel Fitzgibbon and backbencher Peter Khalil not to stand in the way of the coalition’s full tax package, Albanese said the shadow cabinet had decided the $95bn cost of the third tranche, due to come into effect in 2024-25, could not be justified in a soft economy.
“We think that stage three - at a cost of some $95 billion down the track ... is really a triumph of hope over economic reality.”
“This is a genuine approach by Labor, a constructive approach, and I hope that the Government receives it as such.”
Albanese said that if the government agreed to defer stage three of the tax package – which it has already ruled out doing – then Labor would “facilitate” passage of the first two stages.Albanese said that if the government agreed to defer stage three of the tax package – which it has already ruled out doing – then Labor would “facilitate” passage of the first two stages.
It also called on the Coalition to bring forward stage two of the tax cuts, which includes the already legislated measure to lift the threshold for the 37c tax rate from $90,000 to $120,000 – which it had pledged to repeal had it won the election – and increase the income threshold for the 19% tax bracket from $41,000 to $45,000. It also called on the Coalition to bring forward stage two of the tax cuts, which includes the already legislated measure to lift the threshold for the 37 cent tax rate from $90,000 to $120,000 – which it had pledged to repeal had it won the election – and increase the income threshold for the 19% tax bracket from $41,000 to $45,000.
Scott Morrison flags Trump-style economic plan in pledge to cut more red tape Under the coalition’s plan, the previously legislated change to the threshold for 37% is due to come into effect in July 2022. Labor said bringing this forward to 2019-20 would cost $3.7bn and provide an immediate boost of $1350 for those earning more than $90,000.
Under the Coalition’s plan, the previously legislated change to the threshold for 37% is due to come into effect in July 2022. Labor said bringing this forward to 2019-20 would cost $3.7bn and provide an immediate boost of $1,350 for those earning more than $90,000. Shadow treasurer Jim Chalmers said the government had “no idea” how to turn the economy around, saying Labor was concerned about weak consumption and low wage growth.
The shadow treasurer, Jim Chalmers, said the government had “no idea” how to turn the economy around, saying Labor was concerned about weak consumption and low wage growth. “We have got a problem with consumption and we have got a problem with productivity, and what we are proposing today is a plan, a solution, or at least something that would help turn around those issues in the economy which are leading to the slowest growth for the 10 years since the global financial crisis.”
“We have got a problem with consumption and we have got a problem with productivity, and what we are proposing today is a plan, a solution, or at least something that would help turn around those issues in the economy which are leading to the slowest growth for the 10 years since the global financial crisis,” he said. The Coalition has repeatedly ruled out splitting the tax package as demanded by Labor, putting the two parties on a collision course when Parliament resumes next week.
The Coalition has repeatedly ruled out splitting the tax package as demanded by Labor, putting the two parties on a collision course when parliament resumes next week. Speaking in Perth on Monday, Prime Minister Scott Morrison said tax relief was needed to help boost consumer sentiment.
Speaking in Perth on Monday, the prime minister, Scott Morrison, said tax relief was needed to help boost consumer sentiment. “Labor’s internal conniptions about supporting the Government’s plan to simply let Australians keep more of what they earn exposes Labor’s deep mistrust of Australians to do what’s best for them with their own money,” he said.
“Labor’s internal conniptions about supporting the government’s plan to simply let Australians keep more of what they earn exposes Labor’s deep mistrust of Australians to do what’s best for them with their own money,” he said. “Our proposed tax relief doesn’t just have a strong political mandate. It has a compelling policy rational.” “Our proposed tax relief doesn’t just have a strong political mandate. It has a compelling policy rational.”
“We will not split our plan to deliver income tax relief to all working Australians.
“Labor have still not learnt the lessons from the election.
“Our plan prioritises low & middle income earners, takes the bracket creep monkey off people’s back, is economically necessary & fiscally responsible and, importantly, it is what Australians voted for.”
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