Federal Budget 2017: Labor to oppose scrapping of repair levy

LABOR will oppose the Turnbull Government’s plan to scrap the budget repair levy, arguing it is a tax cut for the rich when the Medicare levy is rising for every Australian.

LABOR will oppose the Turnbull Government’s plan to scrap the budget repair levy, arguing it is a tax cut for the rich when the Medicare levy is rising for every Australian.

In his budget reply speech tomorrow night, Opposition Leader Bill Shorten will declare the levy needs to stay as the deficit is forecast to be $29.4 billion next financial year.

The two per cent levy, which hits those on more than $180,000, costs Prime Minister Malcolm Turnbull $6750 from his $517,504 salary, while a millionaire pays $16,400.

It ends on June 30 but Labor had previously voted in favour of legislation for the measure to be temporary.

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Mr Shorten is expected to say tomorrow that Mr Turnbull’s decision to let the levy lapse means he has “chosen multinationals and millionaires over middle and working class families”.

“Only this Prime Minister could vote to give himself and his frontbench a personal tax cut, on the same day that 700,000 Australian workers will have their penalty rates cut,” Mr Shorten is expected to say.

“Only this Prime Minister could imagine that was ‘fair’.”

Opposition Leader Bill Shorten and PM Malcolm Turnbull in Question Time. Picture Kym Smith

Labor has not decided whether it would move to reinstate the budget repair levy if it wins the next election.

Mr Shorten said today he would “weigh about what we do about the Medicare levy increase”, which will see the levy increased from 2 per cent to 2.5 per cent on all Australians.

He is expected to say tomorrow night that it is unfair to ask low income workers to pay more when the rich are getting a better deal.

“At a time when the government is asking every other working Australian to pay a higher rate of tax, Labor will not support spending at least $1.2 billion each year on the wealthiest 2 per cent.”

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