Leaders' budget jousting heads south

As the prime minister seeks to step up pressure over budget measures, the opposition leader is pushing his education agenda.

Malcolm Turnbull (L) speaks to Bill Shorten

Federal leaders will head to Adelaide as they continue their shadow-boxing over the federal budget. (AAP)

Malcolm Turnbull and Bill Shorten will head to Adelaide on Tuesday as they continue their shadow-boxing over the federal budget.

The prime minister is expected to talk up jobs in the defence industry as the opposition leader pushes Labor's alternative plans for education and skills training.

Mr Turnbull is also seeking to convince senators to deliver on three key budget measures: a levy on the five biggest banks; a 0.5 percentage point lift in the Medicare levy to fund the national disability insurance scheme; and a $18.6 billion rise in schools funding over the decade.

All of the measures have strong public support, but Labor says the devil is in the detail.

The federal opposition is backing the bank levy, but says the government should not impose the higher Medicare levy on lower-income earners and argues the school funding package represents a $22 billion cut.

Two polls published on Monday gave Labor a 53-47 two-party preferred edge over the coalition.

Mr Turnbull may need to turn to the Greens and the SA-based Nick Xenophon Team to pass some elements of the budget.

Senator Xenophon says South Australia was ripped off in the budget delivered last Tuesday.

He argues only 4.5 per cent of the government's infrastructure budget will go to his home state, despite its population share being 7.1 per cent and having 12 per cent of the local road network.

The Greens are weighing up whether to support the schools funding package and have issues with the Medicare levy applying to low-income earners, but support the bank levy.

Senate estimates hearings are scheduled to start next week, but it won't sit to deal with legislation until June 13.


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Source: AAP


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