Bill Shorten flags class warfare, vows to crack down on tax breaks for rich

BILL Shorten has ratcheted up his class-warfare rhetoric, vowing to crack down on tax breaks and subsidies for rich people to tackle the inequality which he says is holding Australia back.

Opposition leader Bill Shorten. Picture: AAP/Tracey Nearmy

BILL Shorten has ratcheted up his class-warfare rhetoric, vowing to crack down on tax breaks and subsidies for rich people to tackle the inequality which he says is holding Australia back.

The Labor leader, who has already committed to keeping the deficit levy on high income earners, on Friday also foreshadowed harsh measures and tax rises for the wealthy.

The Opposition Leader took aim at the nation’s “two-class tax system”, in which he said most workers “struggle in economy” while “people with the resources to opt out” can exploit the system “in business class”.

In a speech he called a “scene-setter” for Labor’s next election campaign, Mr Shorten did not reveal what changes he would make to the tax system, beyond the party’s promised overhaul of negative gearing.

Opposition leader Bill Shorten. Picture: AAP/Tracey Nearmy

But he flagged that a government he led would target the “whole different set of rules” for wealthy Australians who minimised their tax with “vast property portfolios, complex deductions and parking their money in offshore tax ­havens”.

“People with the resources ... to upgrade themselves to the pointy end,” Mr Shorten said.

“People with sufficient wealth to utilise every loophole — and take advantage of every tax subsidy.

“Almost all of this is legal. But when a nurse on $50,000 asks why someone who earns 20 times more than they do, pays less in tax — saying ‘it’s legal’ isn’t good enough.”

Speaking at the Economic and Social Outlook Conference, Mr Shorten said voters were ready for a mature conversation about reforming parts of the tax system that had been put in the “too-hard ­basket”.

“We shouldn’t tolerate a two-class, opt-out system, just because that’s how it currently stands,” he said. “And we cannot ignore unfairness, just because there’s a political risk in remedying it.”

Mr Shorten later refused to say whether Labor would commit to tax cuts for low-income earners but promised to restore penalty rates which were cut by the Fair Work Commission for hospitality, retail and fast food workers.

Treasurer Scott Morrison conceded earlier this week that not all Australians had benefited from the nation’s record 26 years of economic growth.

“It’s our job to make sure that we spread that growth as far and wide as possible.”

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