NewsBite

Labor ‘losers’ told to tighten belts

Key architects of Labor’s failed agenda pressured to find savings in big-spending portfolios.

Chris Bowen, Bill Shorten and Tanya Plibersek. Picture: Kym Smith
Chris Bowen, Bill Shorten and Tanya Plibersek. Picture: Kym Smith

The three key architects of Labor’s failed agenda — Bill Shorten, Tanya Plibersek and Chris Bowen — will come under pressure to find savings in their big-spending portfolios as MPs warn against going to the next election proposing tax increases.

Senior Labor MPs told The Weekend Australian it would be politically unviable for Labor to go to the next election vowing to repeal­ stage three of the government’s $158 billion tax package.

With Anthony Albanese leaving the door open to opposing the legislated income tax cuts at the next election, Labor Right MPs said the party should instead go to the poll with a less ambitious budget­ in Mr Shorten’s National Disability Insurance Scheme portfolio, Mr Bowen’s health patch and Ms Plibersek’s field of education­.

The push from Labor Right MPs could force the party’s former leader, former deputy leader and former Treasury spokesman to junk their legacy and accept lower spending in their patches.

“There is no way in the world Labor is going into the election promising tax increases. That is just folly. Who has ever done that?” one frontbencher said.

Labor has left the door open to going to the election repealing $137bn worth of income tax cuts, while the party is reviewing its negative gearing and franking credit crackdowns, which were slated to raise about $90bn over a decade.

Mr Shorten used Labor’s extra taxes as justification to spend an extra $14bn on schools over a decade­ as well as big-ticket health items, such as its $2.3bn cancer package and its $2.4bn dental care package.

Mr Bowen and Ms Plibersek yesterday told The Weekend Australian it was up to the government to explain what impact its tax cuts would have on spending on services. “We have pointed out consistently that the stage three tax cuts … run the risk of further big cuts to health and education in particular.” Mr Bowen said.

“The Prime Minister denied that this week in parliament and we intend to hold him to it.”

Mr Albanese yesterday denied he planned to repeal stage three of the package if he were to become prime minister, saying a decision on the issue would be made closer to the election.

“I haven’t said that at all,” Mr Albanese said. “The government and Labor will go to the election in three years’ time with policies.”

At a meeting of yesterday’s ALP national executive, national secretary Noah Carroll indicated his intention to resign following internal criticism of his performance during Labor’s election loss.

He is expected to be replaced by assistant secretary Paul Erickson, from the Victorian Left.

The national executive also formalised a review of the campaign, to be led by former South Australian premier Jay Weatherill and former cabinet minster Craig Emerson. Others on the review team are Australian Services Union assista­nt secretary Linda White, Queensland senator Anthony Chisholm, NSW upper house MP John Graham and West Australian party figure Lenda Oshalem.

The report will be handed down by October. Written submissions will be accepted from branch members, unions, campaign volunteers and party figures.

Add your comment to this story

To join the conversation, please Don't have an account? Register

Join the conversation, you are commenting as Logout

Original URL: https://www.theaustralian.com.au/nation/politics/labor-losers-told-to-tighten-belts/news-story/59df194069ac77fd271519584efdb866