Comments by Shadow Treasury spokesman Wayne Swan on Brisbane radio today suggest Labor is sympathetic to imposing a tax on assets rather than a tax on income, Federal Assistant Treasurer Mal Brough said today.
Wayne Swan, commenting on an article in the Australian today, supported taxation on assets rather than income which is a radical change to tax provisions and begs the following questions:
- Does Labor propose to tax the so-called asset rich and income poor like farmers in drought, pensioners whose principal place of residence has increased in value but is effectively unrealisable?
- What is the wealth threshold that Labor is proposing to tax?
- Will Labor apply the same rules to businesses and tax them not on their profit but on their assets? There are many small businesses with significant assets but relatively low incomes and margins.
In the same program, Mr Swan said that Labor wants to "deal" with concessions. Mr Swan must explain which of these "concessions" he is proposing to abolish. For example, will he abolish:
- Family Tax Benefits;
- Concessions for truck owner-drivers;
- Concessions for primary producers to encourage improved water facilities;
- Deductions for steel capped boots and protective clothing for tradesmen and labourers;
- Capital Gains Tax concessions for small business, or
- The income tax deductions and other concessions vital to support Australian charities.
"Make no mistake. What Mr Swan proposed today is not a reduction in tax but an increase in tax," Mr Brough said.