The Crest of the Commonwealth of Australia Treasury Portfolio Ministers
Picture of Peter Costello

Peter Costello

Treasurer

11 March 1996 - 3 December 2007

Media Release of 23/08/2004

NO.071

LABOR DECEIT ON PAYROLL TAX PLANS

At a conference for Family Business Australia over the weekend, Labor’s Finance Spokesman Mr McMullan repeatedly denied that Labor had a policy to introduce a new federal payroll tax.

Mr McMullan would be aware of Labor’s policy which states that:

    “Under Labor’s approach, there would be a national insurance system for employee entitlements. All employers would be expected to contribute 0.1 per cent of payroll.”(10 February 2002)

Further details were included in a “Fact sheet on Labor’s employee entitlements scheme” dated 2April2004:

    “The new scheme will: […] be funded by a 0.1 % levy on businesses with more than 20 employees, collected along with compulsory superannuation contributions”

The policy was confirmed in Labor’s Industrial Relations Policy release on 6 August 2004:

    “Labor will guarantee 100 per cent of employee entitlements, including superannuation. Labor’s scheme will be funded by a levy of 0.1 per cent of payroll for businesses with more than 20 employees.”

Today’s Courier Mail reports Mr McMullan claiming the payroll tax “is effectively an increase in the superannuation guarantee”.

The superannuation guarantee is paid into an account for each employee covered by it who receives that money plus investment income when they retire.

Labor’s payroll tax will be collected by the Government and very few, if any, who pay it will ever receive anything from it.

Labor’s policy is for a Federal Payroll Tax to be introduced. Mr McMullan has been caught out trying to dissemble and deceive about Labor’s own policy.

MELBOURNE
23 August 2004

Contact: Amanda Kennedy
03 9650 0244