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Budget repair test a stunt from PM: Labor

AAP logoAAP 17/08/2016 Jennifer Rajca

The Turnbull government will dial up the pressure on Labor to support more than $6 billion in budget repair measures when parliament resumes in a fortnight.

In a move dismissed as a stunt by the opposition, the government will introduce an omnibus bill bringing together policies Labor committed to supporting in the lead-up to the July 2 election.

"They (Labor) won't have one slither of credibility if they oppose savings measures they relied upon in the election campaign," Revenue and Financial Services Minister Kelly O'Dwyer told ABC radio on Wednesday.

"They say they want to be constructive, they will have an opportunity to demonstrate that."

Shadow treasurer Chris Bowen says Labor's approach will reflect what it took to the election, but it won't be dictated to by the government.

It was still waiting to see the omnibus bill or be told about its details.

"This is a stunt by Malcolm Turnbull to distract from his own internal problems," Mr Bowen said.

"If there was a legitimate attempt to act in the national interest to pass a bill you would think that Malcolm Turnbull might have picked up the phone."

The prime minister will use his first major economic address since the election to paint a bleak picture of the global economy, saying it's more fragile than at any other time since the 2007 global financial crisis.

Mr Turnbull will warn protectionism and inward-looking policies are starting to gain a foothold as political divisions pick up on disenfranchised people feeling left behind by rapid economic changes.

Prime Minister Malcolm Turnbull. © AAP Images Prime Minister Malcolm Turnbull. "Political responses to this mood of disaffection can have the potential to destabilise global growth, perhaps even reversing some of the spectacular gains we have made over recent decades through open markets and free trade," he will say, adding job creation would counter the trend.

The prime minister will argue it's a critical period for the parliament.

"Nobody should underestimate the importance of this moment as a test of the capacity of our political system to make the right calls on the nation's behalf."

Mr Turnbull says the coalition is ready to take up Labor's offer of a more co-operative parliament - but it must bring an open mind and fiscal rationality to talks, and a pledge to back spending cuts already committed to.

"If we see this plan through over the next three years, I believe Australians will have every reason to approach the decades ahead as they do today - confident, outward-looking, secure and self-assured.

"If, on the other hand, we falter in our plan to transition the economy, there is a real risk of Australia falling off the back of the pack of leading economies."

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