Budget 2014: Opposition calls on Federal Government to drop proposed tax hike

Updated

Federal Opposition Leader Bill Shorten has put pressure on the Government to drop its proposed income tax hike, labelling the idea a "broken promise".

The Government is considering raising the rate in the top two income tax brackets in a bid to reduce the deficit.

Speaking on ABC1's Insiders program, Education Minister and Leader of the House Christopher Pyne would not comment on the proposed increase, reiterating the Government's commitment to a healthier fiscal position.

"The overriding commitment we made to the public was that we would repair the damage that Labor's done," he said.

"There's no easy way out from the debt and deficit disaster that Labor's left us... but what we do has to be fair to everyone and it has to be right for the country."

But Mr Shorten has labelled the proposed change as nothing more than "Tony Abbott's tax" and says the impending budget will be full of "twisted priorities".

"Increasing taxes on working-class and middle-class Australians is a terrible mistake and people will not forgive Mr Abbott for breaking this very big promise," he said.

His comments come after a Galaxy poll, published in today's News Corp newspapers, found 72 per cent of voters surveyed would view any tax increase as a broken promise.

Opposition questions other proposed inclusions

Mr Shorten took fire at other proposed inclusions in the May 13 budget, including a possible co-payment for seeing a GP and changes to the pension scheme.

"Mr Abbott has seven or eight days... can he just keep his promises, not break them, not increase taxes and look after ordinary Australians rather than increasing their taxes and increasing their healthcare costs," he said.

Mr Pyne this morning defended the Commission of Audit recommendation of the $15 co-payment for patients visiting their GP or hospital emergency department, and a $5 fee for concession card holders.

"Now in the economy, putting no value whatsoever on the most expensive service in the economy is a slightly bizarre situation," he said.

Mr Pyne says he is also in favour of expanding the so-called demand-driven higher education system and believes university students could be paying more for their education.

"I do think there is capacity for students to contribute more to their education, especially knowing that they're very likely to have an unemployment rate below 1 per cent and also that they'll earn over a lifetime, 75 per cent more than a person without a university degree," he said.

The Commission of Audit recommended students pay up to 55 per cent of their higher education costs, up from the current level of 41 per cent.

Shorten supports crack down on travel perks

Mr Shorten says Labor would support any move from Government to crack down on politicians' travel entitlements.

Federal Treasurer Joe Hockey has strongly indicated the gold pass - which gives some retired MPs free travel - will be targeted in the budget.

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"This gold card, this gold benefit at the end is a legitimate topic to be identified in the budget," Mr Shorten said.

"In terms of how any changes would work, Labor is willing to work with the Government. It is appropriate that everyone shares the burden."

Former Liberal senator Amanda Vanstone, who worked on the Commission of Audit, says further changes to travel entitlements will make it harder to attract good people to Parliament.

"They have already been cut back, it used to be... whatever you like for life and then it was cut back to 25 [years] and now only recently it's been cut back again," she said.

"I think there's a constitutional issue here. When you retire from work on a set package, you don't expect anyone to come along and change that set package."

Topics: government-and-politics, budget, tax, australia

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