The second phase is scheduled to begin in 2022 and would lower the tax rate for at least 1.1 million people earning between $90,000 and $120,000. A worker on $120,000 a year would enjoy $2200 more tax relief under the Coalition than what Labor is currently offering.
Labor's economic team is instead examining whether to unveil its own tax reform package that could be targeted at middle income earners.
However,the opposition is also debating whether it is better to use some of the slated cost of the Coalition's tax plan to instead pay down government debt,which current stands at $534 billion and is projected to increase to $585 billion by 2022.
The ALP has already ruled out backing the third phase of the government's plan,which would result in a person on $45,000 paying the same rate of tax as someone on $200,000.