Labor leader Bill Shorten has unveiled a new tax plan which will wind back dividend tax imputations.

Ross Greenwood says there is a “fundamental problem” with the plan.

He says, “the inconsequential impact” of what Labor has done will affect the incomes of teachers, nurses and aged-pensioners.

Shadow Assistant Treasurer Dr Andrew Leigh says, “it’s straight out of the Paul Keating playbook”.

He defends the move, saying it’s not an attack on anyone.

“This is a measure which closes off a loophole which is unique to Australia.”

Ross: “Hang on, but that seems as though someone is doing something dodgy. They’re not doing something dodgy, this is the law.

Dr Leigh: “The fact that people are taking advantage of this particular tax rule isn’t a criticism of them, it’s a criticism of the decision to put it in place.”

Ross: “Well that would be a criticism of your party because it fundamental had agreed and put up this proposal before John Howard and Peter Costello picked it up.”

Listen to the full interview below 

Ross also speaks with Michael Rice from Rice Warner.

He tells Ross people at the higher end of town will be able to get around the potential changes.

“I think the main purpose is to raise tax, but the side effect wouldn’t worry them.”

Listen to the Michael Rice’s interview below