Labor's budget reply 'class war'

Opposition leader Bill Shorten has issued Labor's budget reply, telling the government to stop rewarding the rich and punishing the poor.

The government wants to increase the Medicare levy paid by nearly all workers by half a percentage point to 2.5 per cent of taxable income from July 1, 2019, to provide long-term funding for the NDIS.

"This is the fair and responsible way forward", he said during a budget reply speech on Thursday night.

He is, however, under pressure from the government to say if Labor will support a 0.5 per cent hike in the Medicare levy in two years' time, to help pay for the National Disability Insurance Scheme.

Later the treasurer said the cost over the "next" 10 years would be $65.4 billion.

The Coalition want to increase the Medicare levy by 0.5 percentage points for nearly all Australians, which would equate to an extra $375 a year for those earning $75,000.

The combination would mean that, under Labor's proposal, those on incomes of more than $180,000 would pay a 49.5% marginal tax rate.

"Labor can not support making people on modest incomes give up even more of their pay packets", he said.

After the opposition hedged its position last week, Shorten has confirmed a Labor government would put an extra $22 billion into schools above the amount the government has pledged, going back to the original ALP plan.




It was a "budget of big government, higher tax and more debt" and "devoid of values altogether".

The opposition leader was at pains to counter the widespread observation in commentary that this was "a Labor budget".

But he said Treasurer Scott Morrison and Prime Minister Malcolm Turnbull must bear the political consequences if banks pass the costs to customers.

The federal opposition leader has also committed to keeping the coalition's budget fix levy on high-income earners, and says his party will back a $6.2 billion tax on the big banks.

The crackdown would reportedly raise $1.8 billion over a decade and would affect less than 1 per cent of taxpayers.

Finance Minister Mathias Cormann said Mr Shorten should release the costings of his announcement, arguing they would only increase the deficit.

Analysis by Deloitte's Chris Richardson suggests that about 50,000 people with annual income of more than $1 million will contribute 6.9% of the increased revenue from the proposed 0.5% rise in the Medicare levy.

Shorten said Labor would crack down tax evaders hiding funds in offshore accounts.

Related news:

Hot News

Bank warns of 'moderate' growth as it keeps interest rates at 0.25%
May 12, 2017 - 03:23
He added it was unlikely the Bank would seek to change its stance on rates just before next month's election. A general view shows the Bank of England in the City of London, Britain April 19, 2017.

isis-killer-beheading-video-story-top Federation Internationale de Football Association to probe Pogba
May 12, 2017 - 03:20
He has been a regular feature of the United midfield this season, scoring seven goals in all competitions for Jose Mourinho's side.

isis-killer-beheading-video-story-top Bethune-Cookman Graduates Turn Their Backs on Betsy DeVos
May 12, 2017 - 03:16
The booing became an uproar again mid-speech, when DeVos said she would be visiting the grave of the school's founder. DeVos said the Trump administration is fully committed to the students' success.

isis-killer-beheading-video-story-top UFC 211: Back in Dallas, Joanna Jedrzejczyk still a superstar-in-waiting
May 12, 2017 - 03:08
Yet like all great fighters she knows that there is more theatrics to be had, and taken advantage of, before the cage door closes. In total, belts changed hands 11 times, meaning just three champions kept their title reigns intact for the entire 12 months.

isis-killer-beheading-video-story-top Donald Trump to meet Russian Foreign Minister Sergey Lavrov
May 12, 2017 - 03:02
But his hopes for a possible rapprochement with Moscow, so regularly repeated during the campaign, have been derailed. Still, Tillerson's meeting provided a blueprint for how the former Cold War foes might go about improving ties.

isis-killer-beheading-video-story-top Harden, Rockets rout Spurs 125-104 to tie series
May 10, 2017 - 04:19
The Thunder weren't always able to make the Rockets pay for being smaller, but the Spurs aren't the Thunder. But this is a time in the playoffs when you have to step up, and obviously my position hasn't changed much.

isis-killer-beheading-video-story-top 'The Gifted': Fox Orders Marvel X-Men Drama to Series
May 10, 2017 - 04:10
Nix serves as showrunner and will exec produce alongside Lauren Shuler Donner, Simon Kinberg, Marvel Television's Jeph Loeb and Jim Chory.

Gujarat Lions Beat KXIP by 6 Wickets
May 10, 2017 - 04:03
The pressure on the southpaw finally did the trick as he gave away easy catch to Shaun Marsh off the bowling of Rahul Tewatia. The effect: the required run rate, which was 7.64 after six overs, had shot to 10.25 before the start of the thirteenth over.

isis-killer-beheading-video-story-top U.S. adds sanctions on North Korea
May 10, 2017 - 04:01
North Korea on Friday accused the Central Intelligence Agency and South Korea of plotting to assassinate its leader, Kim Jong-Un. It remains to be seen whether the pressure will produce a different North Korea approach to USA -related negotiations.

isis-killer-beheading-video-story-top Two more Fox News employees join race discrimination lawsuit
May 10, 2017 - 04:01
However, Murdoch has a point about the network's ratings as FNC finished April as the most-watched channel in all of cable. Rupert Murdoch has said he is "not worried" about Fox News despite allegations of sexual harassment at the broadcaster.

isis-killer-beheading-video-story-top Indian and Pakistani Army trade fire on LoC in Jammu and Kashmir
May 10, 2017 - 03:58
The bunker was destroyed less the 60 seconds, and Indian soldiers can be heard saying that the target had been hit successfully. Major Gaurav Arya, a retired Army veteran said the attack was carried out by a Sikh Regiment unit.

isis-killer-beheading-video-story-top Fireworks cache explodes in Mexico, killing at least 12
May 10, 2017 - 03:56
Despite frequent and deadly accidents, data show Mexicans continue to spend about $10 million each month on fireworks nationwide. Army troops and government officials cordoned off the blast site as ambulances rush in to collect the wounded.

isis-killer-beheading-video-story-top Trump Approves Arming Kurds in Defiance of Turkey
May 10, 2017 - 03:53
Troops from Kurdish militia units known as the YPG stand guard next to U.S. fighting vehicles near the Syrian-Turkish border. NBC reported Trump and members of his Cabinet spoke about it during a meeting late Monday at the White House.

Emmanuel Macron wins French presidential election in landslide
May 09, 2017 - 01:06
Emmanuel Macron says he would formalize the job of first lady if he wins the election, and says "she has her word to say in this". She also wanted to swap the Euro for the French franc, expel all illegal immigrants and close "extremist" mosques.

Harman Kardon Invoke, Microsoft Cortana powered speaker teased
May 09, 2017 - 00:43
It can also be used to set reminders, check the traffic on your way to work, and control connected appliances in your smart home. To compete with Google Home and Amazon Echo, the Invoke has a familiar design design with a cylindrical form factor.