First of the budget bills voted through the lower house

THE Labor Party has given the okay to the Abbott government to raise income taxes on high income earners under the debt levy confirmed in the Federal Budget two weeks ago.

While several Labor MPs voiced their concerns on the budget's overall impact on lower income earners, the Opposition voted the government's first budget bills through the lower house on Wednesday.

The Opposition is also expected to pass the debt levy - a 1% to 2% rise in income tax on Australians earning $180,000 or more - when it hits the Senate.

While the first of the government's bills to enact $37 billion in savings measures will likely have a clear passage through the Senate, most of the measures are under rising pressure.

Those savings, which Prime Minister Tony Abbott said in parliament, totalled $40 billion on Wednesday, will hit a wall of opposition in the Upper House, unless concessions are made.


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