If elected Bill Shorten will lead easily the highest taxing government in the nation’s history with his plan to hit the economy with $387 billion in new taxes over the decade.
Treasury costings indicate that Labor’s tax hit on the economy has almost doubled from their initial costings of around $200 billion to $387 billion.
This is equivalent to an extra yearly household tax bill of $5,400 within a decade.
Labor’s tax grab would punish hard work, aspiration and enterprise and damage the Australian economy costing jobs and lowering economic growth.
Labor can’t manage money. Bill Shorten is proposing a dangerous experiment on a scale that has never been conducted before.
From Labor’s past experiments, like the Mining and Carbon Taxes, we know their tax grabs won’t work and it will be Australians that pay the price.
Making matters worse this tax bill doesn’t even take into account Labor’s electricity tax which we know will put up the cost of energy for families and businesses.
Cost of Labor policies:
Total medium term impact (to 2029-30)
Personal income tax
Deficit levy tax*
Family business tax
Managing tax affairs
*applies until 2022-23
Under Bill Shorten, Labor is refusing to put a cap on taxes as a share of the economy.
This is because under Labor their tax to GDP ratio would increase from 23.3 per cent in 2019-20 to 25.9 per cent in 2029-30, which would make a potential Shorten government the highest taxing in Australia’s history.
In 2013, after the Coalition came to government, Chris Bowen set a test for the government to keep taxes below 23.7 per cent of GDP.
Now Labor has abandoned any tax to GDP cap because there is no limit to the taxes they want to hit the Australian people with.
In contrast the Morrison Government has set a speed limit on taxes at 23.9 per cent of GDP and we are well below that at 23.3 per cent in 2019-20.
As part of our plan for a stronger economy, we will provide immediate tax relief to millions of low- and middle-income earning Australians.
Low- and middle-income earners will receive a benefit of up to $1,080 to support growth and ease cost of living pressures. That’s up to $2,160 for a dual income family. Taxpayers will be able to access the offset after they lodge their end of year tax returns from 1 July 2019, which is in just 12 weeks’ time.
Under the Morrison Government’s plan, 94 per cent of Australians will face a top marginal tax rate of no more than 30 cents in the dollar, providing a reward for effort and encouraging millions of Australians to get ahead.
Under Bill Shorten, Australian’s will be lumped with a higher Tax Bill, a weaker economy and another Budget mess that will take a decade to clean up.