Andrew Leigh

TWO YEARS SINCE TONY ABBOTT'S 'LOWER TAXES' FALSEHOOD

Two years ago, Tony Abbott and Joe Hockey’s Liberals promised Australians that “taxes will always be lower under a Coalition government.”

– Real Solutions campaign brochure   

It turns out that even when he writes things down, you can’t trust Tony Abbott. The Coalition are now running one of the highest-taxing governments in Australian history.

In Joe Hockey’s second bungled budget, Australia’s tax-to-GDP ratio rose to 22.3 per cent. The tax take is set to rise even further to 23.4 per cent over the forward estimates.

Source: Budget 2015-16, Budget Paper 1, p.4-6

The tax take is going up because Tony Abbott and Joe Hockey are hooked on breaking their promise to deliver “lower, fairer and simpler taxes”.

In the past two years they have:

• Increased fuel excise for every Australian motorist
• Scrapped planned changes to the tax free threshold that would have lowered taxes for 10 million Australians
• Increasing superannuation taxes for 3 million low-paid workers by scrapping the Low Income Superannuation Contribution
• Placed an additional 2 per cent levy on high income earners
• Introduced 17 new or increased taxes and charges on everything from fresh fruit to visas. 

Australians are sick of the Abbott Government talking about cutting taxes while increasing the tax take.

Voters are also sick of a Treasurer whose budget is built on bracket creep, but who keeps promising to deliver personal income tax cuts.

If ordinary Australians had a dollar for every time Mr Hockey promised personal income tax cuts, growth might not be so slow.

Australians know the Government cannot deliver lower income taxes without jacking up the GST or cutting $25 billion from essential public spending. If that is what Joe Hockey is proposing, he must be upfront with the community.

Labor believes taxes should be set at a level that funds the services Australians expect and rely on, but no higher. We also believe taxes should be fair and progressive, not take the most from those who have the least.

The past two years have shown the Abbott Liberals cannot be trusted on tax.

Australians know better than to believe anything Joe Hockey promises now that he is fighting to keep his job. 

SUNDAY, 6 SEPTEMBER 2015

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