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Maeve Bannister

Major parties to face pressure on tackling tax reform

Labor president Wayne Swan says some would like to see more tax reform from the Albanese government. (Jono Searle/AAP PHOTOS)

A debate on tax reform is expected to heat up in coming months as a former Labor treasurer says Australians want more done to make the system fairer. 

Labor national president Wayne Swan, who served as treasurer in the Rudd and Gillard governments, said he had always supported the idea of a super profits tax. 

But he said the Albanese government had already undertaken a range of measures since coming to power, such as proposed changes to multinational and petroleum resources taxes. 

"Some people would like to see them do more but the government is implementing the platform that it took to the last election," Mr Swan told ABC Radio on Friday. 

"There are initiatives when it comes to international tax and it's not surprising some people might want to see more done over time."

Prime Minister Anthony Albanese said he had always supported a "progressive" tax system and expected parliament to do likewise. 

"We need to make sure our taxes are progressive so we can provide the services Australia needs," he told Sky News.

"That's why we have different marginal tax rates, that's why we have a system that ensures education, health and housing and other services." 

A two-pronged push to ditch stage-three income tax cuts and bring in a super profits tax on companies made little impact on the floor of the ALP national conference on Friday.

The party settled on the phrase "corporate tax reform" in its policy platform.

"We have not changed our position on stage three tax cuts and we have been very clear about that," Mr Albanese said. 

Greens leader Adam Bandt said Labor was backing tax cuts for the wealthy while asking people to keep electing them for decades to come. 

"It is incredible that even when the so-called left has the numbers, the party still backs unfair stage-three tax cuts ... while opposing a tycoon tax on corporate super profits," he said.

Liberal frontbencher Jane Hume said it was important to look at the tax system's efficiency.

"A taxation system that isn't efficient is essentially a disincentive to growth, a disincentive to aspiration, to starting businesses," she said.

But she said a super profits tax was simply "bashing the top end of town".

ACT independent senator David Pocock said neither of the major parties were willing to have a serious conversation about necessary tax reform, particularly in the property sector. 

He acknowledged such a discussion would be "thorny" because the tax system had historically incentivised property investment and people had made those investments. 

"If you agree that everyone should be able to afford (a house) then we’ve got to start to tackle tax and at the moment neither of the major parties want to discuss that," he told ABC Radio. 

"I would love to see (the government) looking at starting to grandfather some of the existing arrangements or cap the number of properties you can claim negative gearing and capital gains tax discounts on so we can start to move to a more equitable system that is accessible."

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