Opposition open to tax reform, warns against hiking pressure on Australians

The Opposition says it is open to working with Labor on tax reforms but is warning against putting further pressure on Australians.

Jim Chalmers used a major speech on Wednesday to flag the Albanese government was looking at reforms beyond its proposal to roll back concessions on ultra-high super accounts.

The Treasurer said a rethink was needed to address revenue challenges posed by an ageing population and the transition to net zero.

Mr Chalmers also said it would be on the agenda at the upcoming roundtable on productivity, which measures how efficiently labour can produce goods and services.

Opposition finance spokesman James Paterson has welcomed “the government’s recognition that we have a productivity crisis” and said roundtable “is a good first step”.

“But we need more than just a meeting,” Senator Paterson told Sky News on Thursday.

“We need a plan of action to come out of it.”

In his speech, Mr Chalmers said reforms would open opportunities for tax breaks for some but warned there would be “trade-offs” that could leave some paying more.

“I am concerned that the Treasurer is possibly preparing the ground here for higher taxes and in the middle of a productivity crisis, and particularly in the middle of a business investment crisis, which is at decade lows, the last thing the Australian economy needs right now is higher taxes,” Senator Paterson said.

“We are up for a conversation with the government, to work with them constructively to make our tax system more efficient, to collect revenue and revenues in ways that are less distortionary, but we are not going to give them a blank cheque to increase taxes on Australians at the worst possible time for our economy.”