CANBERRA, June 7 (Xinhua) -- Australia's opposition has promised a shift away from the tax-and-spend approach to economics that proved costly in May's general election.
Jim Chalmers, the Australian Labor Party (ALP)'s new Treasury spokesperson, on Friday flagged a return to centrist economic policy and support for the government's proposed tax cuts for middle and high income earners.
In the lead-up to the general election on May 18, former Labor leader Bill Shorten and Chalmers' predecessor, Chris Bowen, promised major tax cuts for low-income earners and record investment in healthcare that would have been paid for by closing tax loopholes that primarily benefit the wealthy, especially retirees.
Those economic policies have been identified as a key factor in Labor losing the election to the incumbent Liberal-National party (LNP) coalition despite leading in every opinion poll.
Chalmers, a member of Labor's conservative faction, on Friday suggested that a rethink of how the party approached economic was necessary.
"If we don't end up taking the exact same tax policies to the next election that we took to the last one, then it is entirely reasonable to assume we will have to recalibrate our spending plans too," he told News Corp Australia.
"We have three years to put together a new agenda and we'll take our time. Our priority is to ensure that we get maximum bang for our buck from spending in terms of growth and employment."
In a separate interview with Fairfax Media, Chalmers said that Labor would reverse its opposition to the proposed 20-billion-Australian dollar (13.9-billion-U.S. dollar) tax cuts if they could be instituted for financial year 2019-20, which begins on July 1.
Under the government's plan, Australians earning up to 120,000 Australian dollars (83,687 U.S. dollars) per year will pocket an extra 2,600 Australian dollars (1,813 USD).
Prior to the election, the ALP ruled out supporting the cuts, which Bowen described as "fiscally irresponsible."
However, Chalmers said the party would now consider any policy that helped middle and low-income earners.
"We would consider any proposal to get the economy moving again if it was responsible and if it was affordable and if it prioritises people who are more likely to spend in this floundering economy," he said.
