Labor leader uses budget reply speech to launch Labor’s campaign for byelections triggered by Katy Gallagher case

Bill Shorten has pledged to “go further and do better” for low and middle-income Australians, supporting the Turnbull government’s first phase of budget tax cuts, and then almost doubling the tax relief from 2019-20 for up to 10 million workers.
The Labor leader used his budget reply speech to launch Labor’s campaign for the byelections that have been triggered in several states as a consequence of this week’s high court decision in the Katy Gallagher case – outbidding the Coalition on tax relief for its heartland.
In addition to the tax pitch, Shorten promised to scrap upfront fees for 100,000 Tafe students “who choose to learn the skills that Australia needs”, create a $2.8bn “better hospitals fund”, including an extra $764m over the forward estimates, and fund MRI machines for 20 hospitals and imaging centres in the regions and outer suburbs at a cost of $80m.
He also pledged $25m for a corporate crime taskforce, to equip the commonwealth public prosecutor to respond to any recommendations for criminal prosecution flowing from the banking royal commission.
In a speech calibrated to rally the base, Shorten told parliament that after “years of flat wages, rising power bills, increasing health costs under the government, it is a time for a fair dinkum tax cut for middle-class and working-class Australians”.
Shorten hardened his stance on the government’s plan to flatten the income scales unveiled in Tuesday night’s budget, citing analysis pointing out that the greatest benefits in the proposal would flow to higher income earners. “Very quickly, this is looking like another mates’ rates tax plan from the Liberal party.”
He said Labor had made fiscal room to increase tax relief for low and middle-income earners, boost funding for services and pay down debt faster than the Coalition. “We can afford to do more to help these 10 million Australians because we are not giving $80bn to big business and the big four banks.”
The first phase of the Turnbull government’s seven-year, $140bn tax plan will give 4.4 million taxpayers with incomes between $48,000 and $90,000 the full $530 cash rebate next July.
Shorten’s commitment on Thursday night will increase the full rebate to $928 the following year at a cost of $5.8bn over the forward estimates, with 4 million people earning between $50,000 and $90,000 getting the full rebate, and 10 million getting a portion.
He later told the ABC that Labor could fund the package unveiled on Thursday night and return the surplus at the same time as the government.
With a mini-election underway courtesy of the looming by-elections in Longman, Braddon, Perth, Mayo and Fremantle, the Labor leader on Thursday night goaded the prime minister to line up the Coalition’s budget plan, including the proposed tax cut for Australia’s largest businesses, against the opposition’s alternative.
Shorten declared Labor would campaign “house by house, street by street, suburb by suburb”.
“My team and I will make this a referendum on your $80bn corporate tax giveaway to multinationals, big business and the big banks,” he said.
“This nation needs a leader that gets it. It needs a party with a plan for the future and it needs a government that will deliver a fair go for all Australians.”
Budget week has seen both the major parties move on to an election footing, and muscle up in anticipation of a federal contest that could be called any time after August.
The government is pressing the Senate to agree to its budget centrepiece but not everyone is convinced of the merits of the whole package. Shorten’s comments on Thursday night suggest Labor will not back the tax relief proposed for higher income earners.
Both the One Nation and the Centre Alliance blocs have signalled they will back the first two stages of the Turnbull government’s income tax cut plan but are reserving their position on the final element of the reform – a more controversial proposal that flattens the tax scales and provides the biggest benefit to high-income earners.
The Tasmanian senator Steve Martin supports the Coalition’s package and the South Australian senator Tim Storer is on board with the first two stages but not the third.
Asked to give his position on the proposal on Thursday, the Victorian senator Derryn Hinch said: “I’m nowhere at the moment.”
Hinch told Sky News he intended to be “the last man standing” in any negotiation with the government but would not horse trade over the package.