12 September 2012

Hockey splits with Abbott on his plan to jack up company tax

Shadow Treasurer Joe Hockey has been caught out contradicting Opposition Leader Tony Abbott on the Coalition's new groceries tax that will increase the cost-of-living for Australian families.

According to newspaper reports today, Mr Hockey told a group of executives:

"I really don't want to change tax rules…"

(The Australian, 12 September 2012)

Mr Hockey deliberately failed to tell the audience about the Coalition's 1.5 per cent increase to the company tax rate for Australia's most successful companies.  Jacking up the company tax rate will see companies pass on the extra cost to consumers, increasing prices at the checkout.

Mr Hockey and the Coalition not only have a plan to jack up taxes for business, they opposed a cut to the company tax rate, the instant asset write-off for small businesses, tripling the tax free threshold and cuts to income tax.

Joe Hockey was a Senior Minister in the Howard Government – the highest taxing government in Australian history. 

The tax-to-GDP ratio is now 22.1 per cent in 2012-13, well below the 23.7 per cent in 2007-08 that we inherited from the Liberals.  Tax as a proportion of GDP is now lower than it was at any time under the Howard Government.

If Australians had kept paying tax at the same rate they were in the last year under the Liberal Party they would be paying an extra $24 billion in tax in 2012-13.