Labor has promised to close loopholes being used by multinational corporations to avoid paying tax to "level the playing field for Australian businesses" if it wins the federal election.
Announcing the party's economic plan, Shadow Treasurer Jim Chalmers said Labor would focus on managing rising inflation, lifting stagnant wages and cutting wasteful government spending.
"Australians are getting absolutely smashed by the rising cost of living on Scott Morrison's watch," Mr Chalmers said.
"Prices are going through the roof, real wages are falling, and interest rate rises are about to add to the pain people are feeling. … Everything is going up except people's pay."
Mr Chalmers said the party would not propose tax reforms beyond multinationals, but would use industry investment to drive wage growth.
"Australians have been paying more tax and losing out on funds that should be available for vital services like Medicare, aged care and child care while multinationals have been using tax havens and tax avoidance schemes to avoid paying tax in Australia," Mr Chalmers and Shadow Finance Minister Katy Gallagher said in the party's economic statement.
Labor's "multinational tax integrity package" would support the OECD's proposed global 15 per cent minimum tax for multinationals, taxed where products or services are sold — which is also supported by the Coalition.
The party would also cap multinational debt-related deductions at 30 per cent of their profits, and limit their ability to use offshore tax havens.
Labor said its reforms would bring in an extra $1.89 billion over four years, starting in 2023.
The Coalition has also made commitments to further crack down on multinational tax avoidance in the next term, including by extending funding to the tax office's Tax Avoidance Taskforce, which was established by the Coalition in 2016.
Employment Minister Stuart Robert criticised Labor's economic plan for lacking detail, arguing the Coalition's economic plan was laid out in the pre-election budget.
"Compare that to the ALP's 11-page plan, which is about job cuts, a review, and agreeing with us on multinational tax avoidance, that's their plan," Mr Robert said.
"11 pages, compared to our plan, which is a full budget."
Labor promises 'rorts audit'
The Shadow Treasurer said if Labor won office it would immediately begin an audit of the decade of Coalition government spending, saying it's time in office has been "defined by record rorts".
Mr Chalmers said that audit would be used to identify $5 billion in savings to repair the budget, including through trimming government spending on outsourced contracting and labour hire.
But Labor also openly conceded it would be unable to achieve all its economic aims in a single term of government, saying its priorities would be on creating jobs and lifting productivity, increasing wages and incomes and generating new business investment.
"In this economic environment with rising inflation as a core risk, the challenge will be to reorient spending towards policies that will lift wages and the productive capacity of the economy while improving the budget," the party said.
Mr Chalmers pointed to several policies designed to lift wages over the next term, including childcare reforms to help people "work more and earn more", increased funding for education and training, and investment into renewable technologies, manufacturing and care industries.
Labor would also support minimum wage cases, such as the proposed wage increase for aged care workers currently being considered by the Fair Work Commission — a case the Coalition has avoided weighing in to.
The party said it would also regulate the gig economy and "empower" the Fair Work Commission to make insecure work more secure.
Earlier this month the government cut the fuel excise and offered a one-off cost of living payment as part of a 'cost of living' package as fuel prices skyrocketed.
But Mr Chalmers said despite inflation surging 5.1 per cent over the past year and expected interest rate hikes on the horizon, the government had no ideas for improving cost of living beyond those temporary measures.
"The government is completely silent about what happens after the election," he said.
