Media Release – Labor proposes fast-tracked tax cuts and infrastructure investment to boost economy – Monday, 24 June 2019
Labor is today proposing a solution on the Government’s income tax package which would bring forward planned tax cuts and infrastructure investment to boost the floundering Australian economy.
Labor’s proposal will get more money into the hands of Australian workers faster.
Combined with expedited investment in already planned infrastructure projects, the fast-tracked Stage Two tax cuts would serve the national economic interest by stimulating economic activity and job creation.
Australians have conflict fatigue. They want outcomes, not arguments. Labor wants to play a constructive role and the solution announced today will provide the economic stimulus Australia needs.
We will enthusiastically support Stage One of the tax cuts when Parliament resumes next week.
We will also support Stage Two of the income tax plan, currently planned to come into effect in 2022-23, just after the next election. However, we propose bringing forward part of Stage Two to 2019-2020. Labor calls for the increase of the 37 per cent threshold from $90,000 to $120,000 to be brought forward to 2019-20. This would provide up to $1350 a year to those earning above $90,000 three years earlier than currently planned.
We also urge the Government to bring forward some of its planned infrastructure investment, as has been proposed by the Reserve Bank of Australia, to create economic activity and jobs in the short term while boosting productivity over the longer term.
We understand our proposals would have Budget implications and we want to work with the Government to make sure they are implemented responsibly to help grow the economy without jeopardising forecasted surpluses.
If we can get agreement on Stages One and Two, we’d commit to passing them quickly and seek to defer Stage three – the most expensive and contentious portion – until the next Parliamentary fortnight.
Stage Three won’t have the same impact on the economy now. It is five years away and costs $95 billion and we need to take the time to give it proper consideration.
Labor wants tax cuts sooner to help grow the economy. If the Liberals continue to delay and hold Stage One and Two hostage, they will be putting politics ahead of the welfare of the national economy.