James Campbell on federal tax cut battle: Bill Shorten rolls the dice to sell Libs’ budget offer as unfair

BILL Shorten’s opponents like to paint him as a man who will say and do anything to get elected, but evidence is mounting he is a risk taker. And Labor have rolled the dice again on tax cuts, writes James Campbell.

HIS opponents like to paint Bill Shorten as a man who will say and do anything to get elected.

But when you look at his record — from pledging to rewrite the nation’s workplace relations laws to rolling back negative gearing and cash refunds for dividend imputation credits — the evidence is mounting the Opposition Leader is a risk taker.

On Tuesday Shorten and his Treasury spokesman Chris Bowen rolled the dice again.

TAX CUTS: TURNBULL AND SHORTEN GO HEAD TO HEAD

Prime Minister Malcolm Turnbull and Opposition leader Bill Shorten cross paths in Parliament. Picture: AAP/Mick Tsikas

Not only will Labor vote against the Turnbull Government’s current Bill that includes the second and third stage of its proposed income tax cuts.

But it will go into the next election with a promise to repeal these tax cuts if they come to government.

At the time of writing, it appears as though the Government is only one crossbencher short of the 39 votes it needs to pass the whole income tax package.

Labor is betting it can convince voters that Stage 3 of the tax cuts — which will mean everyone on incomes between $41,000 and $200,000 will pay the same rate of 32.5 per cent in the dollar — are “expensive”, “unfunded” and “unfair”.

On the Turnbull Government’s previous form selling its policies to the Australian people, you’d have to say it’s a safe bet.

Blocking — or repealing — Stage 2 of the government plan is riskier for Labor.

The evidence is mounting Opposition Leader Bill Shorten is a risk taker. Picture: AAP/Mick Tsikas

This stage sees the threshold at which the 37 per cent tax rate kicks in jump from $90,000 to $120,000.

It’s one thing to campaign against teachers and nurses who earn $70,000 being on the same tax rate as a barrister on $200,000 but it’s another to cancel the tax cut of CFMEU members working on the Melbourne Metro, whose overtime and penalty rates take their taxable income above $90,000.

Labor’s announcement means that despite all its talk about wanting the Bill passed before Parliament rises for the winter break, the Government will be in no hurry to bring this to a vote.

Leaving it in limbo until August will allow the Liberal Party to campaign against Labor for blocking immediate tax relief for 10 million people.

And down the track, if it finds it can’t pass the whole thing, it can always split it up. Two out of three ain’t bad.

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