Fifty prominent Australians have written an open letter to Prime Minister Malcolm Turnbull declaring "Australia doesn't need lower taxes" and calling for the federal government to place fairness at the heart of the 2016 federal budget.
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The letter is signed by former Reserve Bank governor Bernie Fraser, ACTU president Ged Kearney, former Labor premier Carmen Lawrence, Uniting Church president Stuart McMillan, Nobel prize winner Peter Doherty and a raft of economists and legal and public policy experts. It was published as a full page advertisement in Fairfax newspapers.
It comes as Mr Turnbull prepares to announce the government will push to abolish the Road Safety Remuneration Tribunal, an attempt to reset the political agenda after days of pressure within the Coalition over whether to back a banking royal commission.
The letter asks Mr Turnbull "not to cut taxes at this time - and certainly not for companies".
"A debate about tax reform should begin with the question of how much tax is required to fund the services we need to build a fair and decent society in Australia," the letter states.
"Real tax reform also requires fairness. A serious tax reform package designed to be 'fair' should address as a priority the current generous tax concessions to the top end of town, inequitable distribution of superannuation tax concessions and the capital gains tax discount, not how to give big businesses large company tax cuts at the expense of services that everyday Australians rely on."
The letter's publication comes as Mr Turnbull and Treasurer Scott Morrison grapple with how to deliver either personal or company tax cuts in their first budget, before an expected eight-week election campaign and a July 2 election, with sweeping changes unlikely in a constrained fiscal environment.
Mr Turnbull pledged at the weekend that "this budget will not be about a fistful of dollars; it will be about prudence, fairness and responsibility to our future generations".
The budget is expected to tighten the tax rules around superannuation contributions.
The government had planned to move legislation to stay a pay order from the Road Safety Remuneration Tribunal, which truck owner-drivers say will force them out of business, and legislate in the second term of a re-elected Turnbull government.
But in a move designed to increase pressure on Labor, Mr Turnbull will say on Wednesday the government plans to move on the abolition of the tribunal when a special sitting of Parliament, called to pass bills designed to re-establish the construction industry watchdog, begins next Monday.
Workplace Minister Michaelia Cash said the plan to abolish the the tribunal was a test of leadership for Opposition Leader Bill Shorten. "This is an opportunity for the Labor Party to fix the mess they created," she said.
Meanwhile, a poll of 1010 people conducted for the Australian Council of Trade Unions by Essential Media found two-thirds of Australians significantly underestimated the number of companies that paid no tax in Australia.
According to the Tax Office, 38 per cent of corporate entities paid no tax, which prompted 85 per cent of respondents to support the federal government closing tax loopholes. The Turnbull government has vowed to take on corporate tax avoidance.
In the poll, 89 per cent of respondents backed the creation of a national independent commission against corruption with the power to investigate cases of corporate tax avoidance.
Australia Institute director Ben Oquist said Australia was the sixth lowest taxing country in the OECD.
"A five-point cut in the company tax rate would deliver a projected $27 billion windfall over 10 years for the four major banks alone," he said. "This simply makes no economic sense and would put Australia's revenue base at risk."
Ms Kearney said:"Australians are sick of being told they must live within their means and accept cuts to services while our government allows big business to skirt their responsibilities."
