Victorian Labor MP Peter Khalil is among those in his party urging colleagues to pass the federal government’s $158 billion tax plan in full, if the Coalition remains unwilling to carve up legislation.
The government will need Labor or at least four crossbenchers to support the three-stage tax package to get it through the Senate when parliament resumes in less than a fortnight.
Labor supports the first stage of the plan, which will mean extra cash for low and middle income-earners.
But it believes the later stage, aimed at flattening the tax rates by mid-2024, shouldn’t be legislated years in advance and may benefit too many who are already wealthy.
The coalition has ruled out splitting up the package, arguing the later stage will bring much-needed structural reform.
Mr Khalil says Labor would prefer that the coalition ditch the later part of the plan.
But if it doesn’t, he believes they need to back the full package, and says there are other Labor MPs who feel the same.
“In the scenario that looks increasingly likely, which is they will not split the tax cut package, my view is Labor should not block tax cuts that will benefit millions of working and middle-class Australians,” he said.
“If that means we are not given any choice other than to pass the entire package then that is what we should do.”