Bill Shorten challenges Malcolm Turnbull to back Labor's $8b budget savings

Extract from ABC News

By political reporter Dan Conifer

Posted about 5 hours ago

Photo: Bill Shorten says he wants Malcolm Turnbull to help him "set a new tone" (AAP: Mick Tsikas/Lukas Coch)

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Federal Labor leader Bill Shorten will challenge Prime Minister Malcolm Turnbull to support $8 billion in "fair dinkum" budget repair measures.

Key points:

• Labor's proposals include curbing negative gearing tax deductions and the capital gains tax discount
• Both parties want to hike tax on tobacco annually for four years
• Coalition wants Labor to support a bill containing $6.5 billion in budget measures

In a National Press Club address, Mr Shorten will outline eight pre-election Labor commitments he says the Government should adopt in the spirit of bipartisanship.
"At the beginning of a new parliament, I call on Mr Turnbull to help set a new tone," he will say.
"Put the nation ahead of partisan politics, join with me in locking-in these changes with lasting benefit to our nation's bottom line."
The list includes the ALP's plan to severely curb negative gearing tax deductions and the capital gains tax discount — measures the Coalition fiercely rejected during the election campaign.
The Opposition's savings package also include:

• Introducing a $8,000-a-year cap on government loans for private vocational education
• Pausing indexation on Medicare Levy Surcharge and Private Health Insurance Rebate tiers for another five years
• Opposing a new payment of $1,000 a year for families with children under the age of one

"Have the courage to lead your party," Mr Shorten will say in comments directed at Mr Turnbull.

"Be big enough to stand up and say, 'these are good policies, that will help the budget — let's put the campaign aside and adopt them'.

"Recognise that this is fair-dinkum fiscal repair that is both urgent and achievable in the 45th parliament."
The Government clearly supports just one measure — hiking tax on tobacco annually for four years.
Labor wants to stop the Private Health Insurance Rebate going to so-called "junk" policies, while the Government has pledged to review "junk" insurance.
The speech comes before parliament returns next week where the Government has pledged to quickly introduce a bill containing $6.5 billion in budget measures it says Labor indicated it could support.
Labor said it wanted to see the bill before supporting it.

Bowen calls on Coalition to back its savings

But shadow treasurer Chris Bowen last night told the ABC Labor would stand by every savings measure it took to the election.
Mr Bowen urged the Coalition to reverse its opposition to negative gearing and capital gains tax changes.
"If the Government is serious [about budget repair] they would embrace these reforms as well," he said.
"That scare campaign did not work. We in the Labor party were very happy with how the negative gearing policy was received."
Mr Bowen said his party wanted to work cooperatively to fix Australia's public finances and secure the prized AAA-credit rating.
"This is about the Labor Party indicating areas where we can work together very, very constructively and quickly to pass the Parliament and provide reassurance to the ratings agencies and the Australian people."