Exclusive - Treasurer Jim Chalmers Announces New Policy

Treasurer Jim Chalmers today annouced the Albanese Government’s pre-election tax reform policy. Said Treasurer Chalmers:

Today we announce the most innovative and consequential tax reform since Federation. It will benefit all Australians. The regular people and the irregular people.

According to Chalmers, if elected, the Albanese Government will establish the TRAFF - the Tax Reform Australia Future Fund. Through the TRAFF, the government will borrow $7.5 trillion ($7,500 billion) dollars and give it to the Future Fund Management Agency to invest. They government has assumed a 10% annual return, meaning they expect the TRAFF will generate $700 billion per annum of returns annually. An amount sufficient to eliminate all taxes.

Chalmers added:

Under a re-elected Albanese-Chalmers government, health, education, welfare, national defence … all government services will literally be free. Free!

And the economic and productivity benefits of nil corporate and income taxes will be incalcuable.

Treasury Secretary Stephen Kennedy said that Treasury has independently costed the policy and confirmed the Treasurer’s statement. Said Dr Kennedy:

Whatever the Treasurer says, Treasury supports. No ifs, no buts, no doughnuts.

Chalmers foreshadowed the establishment of additional Future Funds to finance other national building projects. He indicated that Cabinet has considered by not yet decided on the esablishment of:

• AMAFF - the Australian Moon Adventure Fund whereby the government would borrow $1.5 trillion to invest and use generated returns to establish an Australian colony on the moon.

• VEFTAFF - the VEry Fast Train Australia Future Fund whereby the government would borrow $2 trillion to invest and use generated returns to build a very fast train network between state and territory capital cities.

• GESPABAFF - the Give Everyone Solar Panels And BAtteries Australia Future Fund whereby the government would borrow $3 trillion to invest and use generated returns to provide free solar panels and batteries to every residence in Australia, even if they already have them.

When asked, the Treasurer was unconerned with the potential $14 trillion of borrowings saying:

What’s the big deal. If there is any problem repaying the debt, we’ll just get the independent Reserve Bank to just print more money. We’ve done it before. We’ll do it again.

Opposition Leader Dutton said that an elected Liberal National Coalition would match the government’s policy. In homage to the inventor of the Future Fund, Peter Costello.