Labor is considering rejecting Scott Morrison's mandate to deliver his full $158 billion in personal income tax cuts while flagging a dramatic shift on climate change policy.
Conservative Party leader Cory Bernardi says he will support the entire tax cut package and has urged the government to cut even deeper if possible.
The Australian reports, incoming Labor leader Anthony Albanese yesterday warned that Labor could try to block the government's full $158bn in income tax cuts in a move that could force the government to split the bill or rely on crossbench support to get it through the Senate.
Mr Albanese, who is expected to take the Labor leadership unopposed on Monday , said he would support the first stage of the government's tax cuts, but refused to immediately endorse stages two and three of the plan, which favour higher income earners and are due to commence on July 1, 2022, and July 1, 2024, respectively.
The warning came as Labor environment spokesman Tony Burke suggested the party needed to rethink its support for market based mechanisms to cut carbon emissions, after its plan to use of international carbon credits to cut emissions was rejected by voters amid a row over the cost of the policy.
Labor became bogged down in the election campaign over its "uncosted" plan to lower carbon emissions by 45 per cent by 2030.
Labor's first major decision following its disastrous election loss will be whether to support the government's tax cuts from its April 2 budget.
The government hopes to bring the legislation to a vote before the current Senate dissolves on June 30, where it needs the support of nine of 10 crossbenchers if Labor and the Greens oppose the bills.
The new Senate, which will be sworn in after July 1, is looking more favourable for the government , which will need to gain the support of only four of six crossbenchers to pass legislation.
Josh Frydenberg warned Labor against defying the will of the people.
Senator Bernardi told Ali Clarke and David Bevan on ABC Radio Adelaide this week, he would back even deeper cuts to taxes.
