Labor insiders coy on income tax cuts, as government casts broken promise as virtuous
Labor is considering reintroducing most of its 2019 tax reform agenda, including changes to negative gearing and capital gains tax, while remaining non-committal on new income tax cuts. Treasurer Jim Chalmers emphasized existing tax reductions but did not rule out further measures in the upcoming budget. The government appears to be framing its past broken promise on tax reform as a principled stance aimed at long-term fiscal responsibility.
- ▪Labor is preparing to re-adopt most of its failed 2019 tax agenda, including scaling back negative gearing and capital gains tax breaks.
- ▪Treasurer Jim Chalmers did not confirm new income tax cuts but highlighted existing minor cuts taking effect in July.
- ▪The government may be positioning its broken 2019 tax promise as virtuous, aiming to build a broader revenue base and counter economic populism.
- ▪Labor will not pursue changes to franking credits this time, unlike in the 2019 election campaign.
- ▪Offering income tax cuts could be used to offset politically difficult tax increases elsewhere in the system.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at The Sydney Morning Herald.