Shorten's budget is 'bulldust': Treasurer

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Bill Shorten says Labor will only back the government's 0.5 per cent increase to the Medicare levy to Australians in the top two tax brackets, who earn upwards of $87,000.

Initially, Mr Turnbull - in answer to a question from Opposition Leader Bill Shorten - said the total cost of the 10-year plan was $26 billion.

He will also tonight outline Labor's position on the Turnbull Government's housing package, which doesn't touch negative gearing or capital gains tax but includes measures for first home buyers, downsizers and renters.

"There's nothing fair about a $65 billion giveaway for big business while you're cutting $22 billion from schools", Mr Shorten said.

The opposition is still weighing up whether to back a hike in the Medicare levy on most Australian taxpayers to fund disability insurance, which could also be confirmed on Thursday.

The Coalition want to increase the Medicare levy by 0.5 percentage points for nearly all Australians, which would equate to an extra $375 a year for those earning $75,000.

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Deloitte's analysis of the impost of the Medicare Levy is all well and good, but it does ignore that high income earners - those earning more than $180,000 a year - would also receive a 2% income tax cut from the expiry of the Budget Repair Levy.

"Labor can not support making people on modest incomes give up even more of their pay packets", he said.

The opposition leader was at pains to counter the widespread observation in commentary that this was "a Labor budget".

They're facing a backlash from the bankers over the surprise $6.2 billion levy on Australia's largest financial institutions.

The federal opposition leader has also committed to keeping the coalition's budget fix levy on high-income earners, and says his party will back a $6.2 billion tax on the big banks.

He said that "if the banks pass on a single dollar of this tax to Australian families then that should be the end of this treasurer, this prime minister and this government".

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He said that under Labor's plan there would be a set a limit on how much people can deduct for managing their tax affairs, capping it at $3000.

The crackdown would reportedly raise $1.8 billion over a decade and would affect less than 1 per cent of taxpayers.

Finance Minister Mathias Cormann called on Shorten to submit his speech to the Parliamentary Budget Office for costing.

"Loopholes for millionaires means middle Australia pays more".

He said Labor's numbers did not add up and it would put the triple A credit rating at risk.

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