The Crest of the Commonwealth of Australia Treasury Portfolio Ministers
Picture of David Bradbury

David Bradbury

Assistant Treasurer, Minister Assisting for Financial Services & Superannuation and Minister for Competition Policy & Consumer Affairs

5 March 2012 - 18 September 2013

Media Release of 27/05/2013

NO.086

Abbott's Paid Parental Leave Tax to push up Interest Rates

Home buyers and small businesses would have to foot the bill for Tony Abbott's paid parental leave tax on business as banks become the latest companies to declare they would have to pass on the cost.

Mr Abbott wants to make Australia's most successful businesses pay his tax in an attempt to cover the enormous costs of his Rolls Royce paid parental leave scheme.

However, it is reported in today's The Australian that under an Abbott-led government, the major banks face extra taxes of more than $100 million.

These costs would be passed on to homebuyers and small businesses through higher interest rates in a massive hip pocket hit.

It is reported that standard variable mortgage rates could increase by 10 basis points, while business rates could rise by as much as 25 basis points.

Mr Abbott has previously declared that he is comfortable with businesses passing on the cost of his tax to consumers:

Well, obviously businesses do pass on costs and if there was a levy that was to fund something, yes that would be a cost.

[RADIO 5AA - 26 APRIL 2013]

The evidence rolls in every day that under an Abbott-led government, Australian businesses and families will be hit with a new tax that will lead to an increase in their cost of living.

While the Government has put in place a sensible and well-targeted paid parental leave scheme, Mr Abbott's paid parental leave tax is a disaster of a policy that continues to struggle to find a friend, even within the Coalition.

27 May 2013