Anthony Albanese under pressure to pass Coalition’s tax package

A number of federal ministers are piling on the pressure on Labor leader Anthony Albanese to face reality and pass on the Coalition’s tax package or risk worsening the economic slowdown.

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Labor leader Anthony Albanese has faced calls from within his own party to face reality after the election defeat and pass the coalition’s tax package.

ALP frontbencher Joel Fitzgibbon piled the pressure on the Opposition Leader by adding his voice to ministers, business leaders and economists to quit stalling or risk worsening the economic slowdown.

“You can’t deny punters a tax cut from Opposition particularly so soon after an election where we had our backsides kicked,” Mr Fitzgibbon said.

Opposition leader Anthony Albanese is facing calls from his own party to pass the Coalition’s tax package. Picture: AAP Image/Daniel Pockett

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Treasurer Josh Frydenberg taunted the new Labor leader, writing in Monday’s Daily Telegraph: “Earth to Anthony Albanese: Labor lost the election now it’s time to support the Coalition’s tax cuts in full.”

Finance Minister Mathias Cormann, speaking from Germany, told The Daily Telegraph Labor was playing tactical political games with the economy and people’s livelihoods.

Independent economist Clifford Bennett said the entire package must pass for the economy to be injected with a desperately needed boost of up to $10 billion at a time when it was slowing.

“The proposed tax cuts are likely to have a very real impact, lifting GDP in the second half of the year and into next year by at least 1%. Given the latest data has GDP at 1.8%, this is a difference that all households will feel. The economy will grow by an additional $4.5 billion conservatively, and could well be a greater than $10 billion benefit,” he told The Daily Telegraph.

Finance Minister Mathias Cormann said Mr Albanese was playing tactical political games with the economy and people’s livelihoods. Picture: AAP Image/James Ross

Mr Albanese has so far withheld support for stage three of the government’s tax cuts package and is insisting the bill be split when it is introduced.

He has called on the government to hold back stage three of the cuts which would reduce the 32.5 per cent tax rate to 30 per cent in 2024.

Government modelling provided to The Daily Telegraph shows that the combined effects of the entire tax package would give a couple on $50,000 and $130,000 cumulative tax relief of $18,495 between 2018/19 and 2024/25.

A string of business leaders rallied to tell Labor that locking in long term tax cuts was critical to consumer spending with the shadow cabinet deeply divided.

NSW Business Chamber CEO Stephen Cartwright said the move would give consumers encouragement.