LABOR GETS THE BIG ECONOMIC CALLS RIGHT (AGAIN)
The budget bottom line is almost $1 billion better off thanks to Labor.
Yesterday we learnt that last month’s $529 million settlement between BHP and the Australian Tax Office would not have been possible without two bills introduced by Labor in 2012 and 2013.
Today, we discover that it was Labor again responsible for saving taxpayers $425 million through our opposition to a reckless intangible asset depreciation measure put forward by the Coalition.
The Government has effectively credited Labor for this saving in its Mid Year Economic Financial Outlook, stating:
‘Given the lack of parliamentary support the Government has decided not to proceed with this measure…’
Unlike the Coalition, Labor could see the budgetary risk of this measure.
As I told Parliament on 21 June 2017:
‘This bill has revenue implications, and that is why Labor will not be supporting schedule 2 of the bill. … In good fiscal times—if we had the rivers of gold that flowed during the Howard and Costello years, in which there were a series of fiscally profligate decisions made by the Liberals—maybe you could give an argument for supporting this. Labor believes we have to carefully scrutinise any widening of corporate tax concessions. Treasury were unable to offer guidance on the medium-term fiscal impact of this measure.’
Once again, Labor is pleased to have been able to save the Coalition from themselves.
Authorised by Noah Carroll, ALP, Canberra.