"An important part of any sensible fiscal strategy is identifying those tax concessions which eat away at the revenue base and reform them or abolish them in order to underpin both budget repair and the funding of new initiatives," he will say.

Mr Bowen lists un-means tested tax-free super in retirement as one of the profligacies of the Howard years but said that would not be touched further. Labor backed the 2016 budget measure in which a $1.6 million cap was introduced on the amount that can be transferred to super in retirement phase when earnings are tax-free. Additional savings can remain in an accumulation account where earnings are taxed at 15 per cent.

'Full of holes'

Mr Bowen said "the tax base remains full of holes and tax concessions and other loopholes go unreformed".

"The government has barely even taken a scalpel to tax concessions which largely accrue to wealthier Australians."

Labor leader Bill Shorten and Chris Bowen are gearing up to attack the government's economic credibility. James Brickwood

In doubting the medium-term assumptions that have the budget staying in surplus, Mr Bowen reaffirms Labor will not go ahead with the remainder of the government's plans to cut company taxes.

"Simply ensuring that the budget bottom line reflects the cost of the tax cuts does not mean they are funded," he will say.


"The fact is that the budget would be $65 billion better off over the decade if the tax cuts weren't proceeded with."

This is a step back from his statement of a few weeks ago when he said Labor would consider company tax cuts but only when the budget was in surplus.

Mr Bowen will give no commitment to keep the tax cuts already legislated – a reduced rate for firms with turnovers capped at $50 million a year – the cost of which is included in the $65 billion figure.

In recent months, the government has accused labor of traducing the Hawke/Keating legacy because of economically populist positions such as opposing the company tax cuts, opposing a Medicare levy increase for those on lower incomes to help fund the National Disability Insurance Scheme, and favouring tax increases for those on higher incomes.

The ethos remains

Mr Bowen will say today's challenges are different to those of 1983 but he will argue modern Labor retains the Hawke/Keating ethos.

"Hawke and Keating didn't lack for courage. They took on difficult fights and vested interests," he will say.

"Tax reform was a crucial part of this reform process. The capital gains tax and fringe benefits tax being particularly stark examples."


He will argue the Hawke-Keating model "was about fairness as well as bold change" and that Mr Hawke and Mr Keating "believed in strong fiscal management".

"While we have much to learn from the Hawke-Keating model, a Shorten Labor government will face a different set of challenges," he will say.

"Relying on a carbon copy of 1983 policies would be exactly equivalent of Hawke and Keating in 1983 proposing the same policies as Labor in 1948.

"The ethos remains but the context is different.

"This is what I mean when I talk about our approach to modern government being Hawke-Keating refurbished."