Federal Labor believes that it is not fair or responsible to lock in billions of dollars of tax giveaways that disproportionately benefit a relative few and so far into the future. Even Peter Costello says they cant be believed.
The independent Parliamentary Budget Offices preliminary assessment of the cost of Stages Three of the Governments personal income tax cut plan (2018 and 2019 Budgets) shows the annual cost starting at $18.7 billion in 2024-25 before rising to $29.8 billion to 2029-30.
|
Stage 3 |
2024-25 ($m) |
2025-26 ($m) |
2026-27 ($m) |
2027-28 ($m) |
2028-29 ($m) |
2029-30 ($m) |
Total ($m) |
|
2019-20 Budget |
12,500 |
14,300 |
15,500 |
16,700 |
17,700 |
18,800 |
95,500 |
|
2018-19 Budget |
6,200 |
7,300 |
8,200 |
9,100 |
10,000 |
11,000 |
51,700 |
|
Total |
18,700 |
21,600 |
23,700 |
25,800 |
27,700 |
29,800 |
147,200 |
Not only would Australia need to re-elect Scott Morrison two or three times, not only do we not have any way of knowing what the economic circumstances will be in 2024-25, but we now know the annual cost of the Liberals Stage Three income tax cuts is set to reach almost $30 billion by the end of the medium-term (2029-20).
This is the most reckless and irresponsible part of the 2018 and 2019 Budgets making a major structural dig into the Budget over the long term where the benefits overwhelmingly flow to our highest income earners.
Once fully implemented in 2024-25, these tax cuts will see someone who earns $200,000 a year get an annual tax cut of $11,640, while some earning $30,000 would receive just $255 a year.
And this says all Australians need to know not just about the competing choices and priorities at this election but how the Liberals will stop at nothing to implement their ideological, flat tax agenda.
A dollar spent on tax cuts for the wealthy is a dollar not spent on extra teachers or nurses or paying down debt.
Labor believes its responsible and fair to focus tax cuts on low and middle income earners over the term of the next Parliament.
Labors approach on income tax prioritises low and middle income earners now when they need cost of living relief and only a Shorten Labor Government will be able to deliver better tax cuts on time for 3.6 million working Australians who have been ripped off by the Liberals.
Labor can pay for better tax cuts for 3.6 million Australians without the Liberals cuts to schools and hospitals because of our reform decisions to make multinationals pay their fair share and close tax loopholes used by the top end of town.
