Chris Bowen refuses to commit Labor to a tax-to-GDP rate

Labor Treasury spokesman Chris Bowen has refused to commit Labor on a tax-to-GDP ratio.

Opposition Treasury spokesman Chris Bowen.

Labor Treasury spokesman Chris Bowen has refused to commit Labor on a tax-to-GDP ratio, saying it would be clear at the next election whether they could match or better the government’s position.

Scott Morrison has promised a 23.9 per cent tax-to-GDP “speed bump” ahead of tomorrow’s federal budget.

Asked whether Labor would go to the next election as the higher taxing party, Mr Bowen instead accused the Treasurer of being happy for future generations to pay down his debt, and to aim only for a surplus of 0.5 per cent of GDP.

As revealed in The Weekend Australian, the government is expected to announce a return to surplus a year ahead of the current target of 2020-21.

December’s mid-year economic and fiscal outlook set a surplus target of 0.5 per cent of GDP, down from the government’s earlier aim of 1 per cent, prompting Mr Bowen to accuse Mr Morrison of “giving up” on budget repair.

Pressed repeatedly on whether Labor’s spending commitments on health and education would result in it being the higher taxing party, Mr Bowen said the tax-to-GDP ratio “won’t be any higher than it needs to be” to fund important services.

“I very much welcome an election around budget responsibility, a contest of budget responsibility, and about economic policies including tax,” he told ABC TV.

“It’s not just about how much tax you raise, it’s about how you raise it. We have led the debate, closing down and reforming the unsustainable tax loopholes and concessions, like reform of negative gearing, reform of capital gains, and reform of dividend imputation refundability.

“We will make it very clear what our tax policies are, including as a proportion of the economy.”