13 September 2012

Liberal hypocrisy on tax exposed

New analysis of the Coalition's voting record has exposed their hypocrisy over tax, said Assistant Treasurer David Bradbury.

This analysis shows the Coalition has opposed nine tax cuts for families and business, including tripling the tax-free threshold, a cut to the company tax rate and small business tax breaks.

It also reveals the Coalition has opposed only eight of the so-called new or increased 26 taxes it rails against, with the rest either passed unopposed or even supported by the Coalition. This is in addition to the Liberals' plans to introduce a new grocery tax to pay for its Paid Parental Leave scheme.

"The Coalition's hypocrisy over tax has been exposed," said Mr Bradbury. "Most of the tax measures that the Coalition complains about so much they didn't even bother opposing - even supporting many of them.

"But while they can't even be bothered voting against the legislation they complain so bitterly about, they waste no time opposing tax cuts for hard-working Australian families and businesses.

"Not only has Joe Hockey and the Coalition opposed a company tax cut, they want to jack up the rate of tax that businesses pay with plans to impose a 1.5 per cent hike for Australia's most successful companies to pay for his Paid Parental Leave scheme. Jacking up the company tax rate will see companies pass on the extra cost to consumers, increasing prices at the checkout.

"Joe Hockey, with his $70 billion budget black hole, has form on jacking up taxes - he 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.

"Joe Hockey and the Coalition have been exposed as hypocrites on tax and far from opposing new taxes they are the ones with plans to jack up taxes for hard-working Australians and companies."


Tax cuts that the Coalition opposed:

  • Increase in the Medicare Levy Surcharge thresholds
  • Tripling tax free threshold
  • Reforms creating the Senior and Pensioner Tax Offset
  • Company income tax (CIT) rate cut
  • Head start in CIT rate cut for small business
  • Increase in instant asset write off
  • Accelerated depreciation for motor vehicles
  • Simpler depreciation pool for small business
  • Low income superannuation contribution