Treasurer sharpens personal tax attack

Former prime minister Paul Keating has blasted Labor's proposed top marginal tax rate of 49.5 per cent as "too punitive", offering Treasurer Scott Morrison more ammunition in his attacks against Bill Shorten.

Mr Keating has told the Australian Financial Review the top rate of personal income tax should be no higher than 39 per cent, which is also well below the government's proposed rate of 47.5 per cent.

"Bill Shorten has been called out by his own. It's not a fair plan to ask Australians to work one day for the government and one day for themselves. That is not a fair tax policy," Mr Morrison told reporters on Saturday.