Today Labor proposes a Budget repair package that will lock in significant structural improvements to the budget worth $8.1 billion over the forward estimates and $80.6 billion over the medium term.

The measures in this package are a significant down-payment on Budget repair that is fair, urgent and achievable in the 45^th Parliament.

This Government has put Australia’s coveted and hard-earned AAA credit rating from the three major ratings agencies at risk, which is why Labor is putting forward detailed and carefully-designed measures which deliver substantial structural improvements.  

The package consists of the following measures which would have Labor’s immediate support:

• Increase to the tobacco excise
• Negative Gearing and Capital Gains Tax Reform
• $8,000 per year cap on VET FEE-HELP loans
• Changes to the PHI Rebate - no natural therapies or junk policies
• Continue the pause on indexation of MLS and PHI Rebate tiers for five years
• Extending existing freezes on family payments thresholds to 2019-20
• Capping deductions for managing tax affairs at $5,000
• Opposing the return of the Baby Bonus

We are ready to work with the Government in good faith to support and deliver these measures in order to achieve meaningful, structural Budget repair over the medium-term.

Labor also calls on the Government to urgently progress superannuation reform that is not retrospective and which would deliver further structural improvements to the budget beyond the $80 billion savings proposed by Labor today.

Labor’s plan delivers more Budget savings than the Government’s plan without retrospectivity, with a Budget improvement of $238 million over the forward estimates and $4.4 billion over the medium term. This is above and beyond savings delivered by the Liberals’ plans for retrospective changes.

In addition, Labor will oppose three of the Government’s superannuation measures that actually cost the Budget $1.5 billion over the forward estimates and $14.7 billion over the decade. This is not affordable in the current climate.

In relation to other savings measures, such as those in the Government’s proposed omnibus bill, our position will reflect the position we took to the election.  As in all cases, we will closely scrutinise the legislation when the Government chooses to make it available. 

LABOR'S BUDGET REPAIR PACKAGE