Labor signals it’s ready to dump negative policy

Anthony Albanese signals he will dump negative gearing and franking reforms.

Federal Opposition Leader Anthony Albanese at a press conference in Brisbane today. Picture: Dan Peled/AAP

Anthony Albanese has given his biggest signal yet that he will dump Bill Shorten’s negative gearing and franking credits reforms, responding “No” when asked if they were still party policy.

Labor powerbroker and shadow special minister of state Don Farrell also said the party had to “go back to the drawing board” on tax policy, but defended some initi­atives, including the plan to limit negative gearing to new houses that Labor ran with in 2016.

The mixed messages came after the Opposition Leader held out the prospect of repealing the final phase of the government’s $158 billion personal income tax plan, with some Labor MPs privately warning it would be politically unviable to go into the next election promising tax increases.

Mr Albanese has repeatedly said all Labor’s failed policies were up for review, but he has usually stopped short of saying the tax plans were no longer part of ALP policy.

Speaking at a roadside press conference in Brisbane yesterday, Mr Albanese offered a different message when asked whether Labor’s policy platform still contained its election promises to reform negative gearing rules and change franking credit refunds.

“No. I’ve said Labor will look at all of our policies. We’ll make announcements down the track about all of those policies,” he said.

“We support a progressive tax system. We also support a system where we’re able to properly fund schools and hospitals and infrastructure, such as this project that I’m talking about here today.”

When The Australian approached Mr Albanese’s office, a spokeswoman said: “All of our policies are under review. Franking and negative are not our policies any more.”

Mr Albanese’s office later clarified the policies were under ­review, and had not been dumped.

The two policies and Labor’s costing plans have been wiped from the ALP website and in previous interviews, Mr Albanese has been less definitive.

He also refused to embrace calls from former ACTU secretary Bill Kelty for marginal tax rates to be further reduced — a call first made two weeks ago in The ­Australian.

Mr Kelty has attacked the government’s three-stage personal income tax cut package for not going far enough, saying the top marginal rate should be below 40 per cent. Mr Albanese brushed-off the comments yesterday, saying: “I’ll respond to people and policies that are actually on the table, and what is on the table is the stage one tax cuts.

“They’ll occur. That’s a good thing. We welcome that. We said that was a priority and the priority should be for the government to give consideration for the bringing forward of stage two of the tax cuts that are due to take place in 2022.

“What that would do would give a tax cut to everyone earning above $90,000. Once you’ve reached $120,000, that tax cut would be $1350. That would be the priority the government should give consideration to.”

Labor passed the government’s tax package but supported only stage one — which provides immediate relief for low to middle income earners. Mr Albanese wanted to fast-track stage two to help stimulate the economy and to split the bill to defer consideration of stage three.

Assistant Treasurer Michael Sukkar seized on Mr Kelty’s comments, saying the former union leader was sending a “very strong message” to his Labor colleagues.

“The Labor Party of 2019 under Anthony Albanese — which looks really like a continuation of the leadership of Bill Shorten — which is this phony class warfare position they adopt on everything,” Mr Sukkar told Sky News.

Senator Farrell told the ABC Labor took its negative gearing policy to the 2016 election and “picked up 14 seats.”