8 October 2004

Labor's 'Participation Dividend' Does Not Exist

As it intended all along, Labor lodged its tax policy too late to have its so-called participation dividend costed.

Labor's tax policy was released on 7th September and the participation dividend was lodged for costing 27 days later and 4 days before election day.

However the Treasury Department states in its report:- "It would not be normal practice to cost this second round effect of tax and family payment policies".

Further quoting the Charter of Budget Honesty, Treasury states:- "The focus of the costing will be the direct budgetary consequences of the policy".

The direct budgetary consequence of this non allowable, non existent revenue gain is a hole of $1.2 billion in Labor's tax policy.