Shorten: Labor’s tax plan will fund infrastructure

Labor leader Bill Shorten says the Coalition can’t afford to fund important rail projects like Cross River Rail because it’s too busy giving an $80 billion tax cut to big businesses.

Shorten on Thursday night delivered the customary Budget Reply speech, in which he said the Coalition planned to provide tax cuts to big businesses and high-income earners at the expense of services, schools, hospitals and public transport.

He said Prime Minister Malcolm Turnbull’s willingness to provide tax breaks to “the top end of town” was to blame for funding cuts across the rest of the economy.

Brisbane’s Cross River Rail, a project the Coalition refused to fund after it failed Infrastructure Australia’s latest cost-benefit test, was singled out by the Opposition Leader.

“Only Labor believes in nation-building, in good public transport projects like Cross River Rail in Brisbane, or the Western Sydney rail line,” adding, “when we fund and build these projects, we’ll prioritise Australian made steel [and] local workers”.

“Labor can put real dollars into Australian infrastructure because we are not going to give $80 billion to multinationals and the big corporations,” Shorten said.

Since the 2018 budget was outlined by treasurer Scott Morrison on May 8, Labor has needled the plan to eliminate the middle-income tax bracket, so by 2022 a person earning $120,000 will be taxed at the same rate as a person earning $37,000 – the current system has an increased tax rate for those earning over $87,000.

Labor has instead proposed a system which would provide more tax relief for lower and middle-income earners instead.

Shorten challenged Turnbull to put his tax plan against Labor’s at any of the five upcoming by-elections – four which have been forced by recent dual-citizenship resignations, and a fifth following the resignation of Labor MP Tim Hammond.

“This is our plan and this is my challenge to the Prime Minister,” Shorten said on Thursday night.

“If you think that your budget is fair, if you think that your sneaky cuts can survive scrutiny, put it to the test. Put it to the test in Caboolture, put it to the test in Burnie, put it to the test in Fremantle and in Perth.

“I will put my better, fairer, bigger income tax cut against yours.”