Labor to take more time considering Coalition’s tax cut agenda - The Australian

Opposition treasury spokesman Jim Chalmers says Labor will take its time considering the Coalition’s tax cuts. Picture: Claudia Baxter

Opposition treasury spokesman Jim Chalmers has signalled Labor will not make a final decision on backing Scott Morrison’s full tax cuts agenda at a shadow cabinet meeting tomorrow.

Anthony Albanese has been warned Labor would “further tarnish” its reputation with corporate Australia if it opposes Scott Morrison’s income tax cut package, as business leaders across the nation urge the opposition to accept the government’s election mandate to implement its $158 billion plan in full.

Mr Chalmers — who is against supporting the third tranche of the tax cuts package — said his party had “11 days” and “more discussions” before it came to a position on the full package.

Ahead of tomorrow’s shadow cabinet meeting, at which divided senior MPs are expected to debate Labor’s position on the package, business figures including Solomon Lew, Gerry Harvey, Trevor St Baker and Michael Fraser warned the opposition against attempting to block tax cuts for 10 million workers.

The Australian revealed last week that shadow cabinet members would push Mr Albanese to support the package, in line with a public urging from Labor backbencher Peter Khalil.

Senior Labor MPs have said the government has an election mandate for their tax changes, and the Coalition has pointed to the insistence of ALP figures before the election that they would have had a mandate for their franking credits and negative gearing reforms if they had won.

Mr Chalmers today said those comments were based on the fact that the controversial Labor plans would have been enacted in this term of government, and claimed the government could not have a mandate for parts of its tax plans which come into effect in future election cycles.

“You don’t win a mandate at one election for all of the subsequent elections,” he said.

“It would have begun in the subsequent term and that’s the point that we’re making. The tax changes that the Government is proposing in this term of Government after they won the election on May 18, we support those changes, which are supposed to be in place by July 1.”