The Hodgman government has signaled a fight over taxes and budget management when both houses of parliament return on Tuesday, in the wake of a bruising Treasury outlook last week.
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The government's lower house leader, Michael Ferguson, pledged the focus for the week would be jobs, the economy and "testing" Labor on new taxes - a move dismissed as a "red herring" by the opposition.
The comments come despite the release of the Financial Sustainability Report last Tuesday, which painted a mostly bleak 15-year picture of the state's finances and recommended tax reform to boost revenue.
In a media conference on Sunday, Mr Ferguson said Labor had gone "wishy-washy" and were acting like "headless chooks" talking about new taxes after supporting the May budget.
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Mr Ferguson said the "responsible" thing for the government to do was maintain its "strong" budget management without introducing new taxes or cutting front-line services - a concern Labor and unions have continued to raise around budget efficiency dividends.
Labor treasury spokesperson David O'Byrne labelled the tax argument a "red herring" after the government last week flagged the tabling of its new point of consumption tax and ditched a proposed foreign investor tax in August.
Mr O'Byrne said Labor had "no new plans for new taxes" but the "significant" report required close consideration.
"It's more a reflection on their [the government's] chaotic decision making when they are going to ignore suggestions by their own Treasury," he said.
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