The Shadow Assistant Minister for Treasury has said stage three of the government tax cut package would make Australia’s tax system “regressive”.

Labor is refusing to vote on the Coalition’s $158 billion income tax package in full, rejecting the third stage of the tax cuts altogether.

Shadow Assistant Minister for Treasury Andrew Leigh tells Ross Greenwood stage three of the tax cuts is not a smart move for the economy.

“It will make the tax system the least progressive it’s been since the 1950s and take us from having a relatively progressive tax system to a relatively regressive tax system, by international standards.

“The flatter you take the rates the more you go towards a regressive tax reform.

“There’s a significant opportunity cost of these expensive stage three tax cuts. Frankly, the government’s attached them to stage one and two because they know that they wouldn’t pass the parliament on their own.”

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Image: Getty/ Michael Masters