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Major parties to face pressure on tackling tax reform

Labor president Wayne Swan says some would like to see more tax reform from the Albanese government.

Labor president Wayne Swan says some would like to see more tax reform from the Albanese government. Photo: Getty

A debate on tax reform is expected to heat up in coming months as a former Labor treasurer says Australians want to see more done to make sure the system is fairer.

Labor national president Wayne Swan, who served as treasurer in the Rudd and Gillard governments, said he had always supported the idea of a super profits tax.

But he said the Albanese government had already undertaken a range of measures since coming in to power, such as proposed changes to multi-national and petroleum resources taxes.

“Some people would like to see them do more, but the government is implementing the platform that it took to the last election,” he told ABC Radio on Friday.

“There are initiatives when it comes to international tax and it’s not surprising that some people might want to see more done over time.”

Prime Minister Anthony Albanese said he had always supported a “progressive” tax system and he expected parliament to do the same.

“We need to make sure that our taxes are progressive so that we can provide the services in Australia needs,” he told Sky News.

“That’s why we have different marginal tax rates, that’s why we have a system that ensures education, health and housing and other services.”

Labor party faithful have gathered in Brisbane for the party’s national conference.

Controversial stage three tax-cuts are expected to be raised by more progressive rank-and-file members who want Labor to abandon or water down its commitment to the cuts, which the government has already ruled out.

“We have not changed our position on stage three tax cuts and we have been very clear about that,” Mr Albanese said.

ACT independent senator David Pocock said neither of the major parties were willing to have a serious conversation about necessary tax reform, particularly in the property sector.

He acknowledged such a discussion would be “thorny” because the tax system had historically incentivised property investment and people had made those investments.

“If you agree that everyone should be able to afford (a house) then we’ve got to start to tackle tax and at the moment neither of the major parties want to discuss that,” he told ABC Radio.

“I would love to see (the government) looking at starting to grandfather some of the existing arrangements or cap the number of properties you can claim negative gearing and capital gains tax discounts on so we can start to move to a more equitable system that is accessible.”

– AAP

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