Last week’s news of the Albanese government’s change to the Stage 3 tax cuts has wound up the tax reform industrial complex.
In the Nine Media papers today is an article that all tax reform options should be on the table:
‘Everything on the table’: Calls for tax overhaul to go beyond stage 3 cuts
Bill Kelty is reported to have said:
Negative gearing and tax breaks for asset owners should be scrapped to fund wholesale reductions in income tax rates
Now Kelty is someone whose opinion is worth listening to IMO and this proposal bears considering. It is also important to contrast what Kelty says against what the Labor Party took to the 2019 election.
Kelty is proposing increasing taxes on assets to pay for tax cuts on income. In 2019, Shadow Treasurer Bowen was proposing to increase taxes to fund increased spending. Big, big difference.
Nine media subsequently quote Allegra Spender:
“Everything has to be on the table in these discussions,” she said. “Capital gains tax and super tax concessions, stamp duty and land taxes, the GST, company tax thresholds, resource rent taxes, payroll taxes and fuel taxes, just to name a few.”
Firstly and respectfully, who cares what Spender thinks. She carries the parliamentary weight of Joe public. The government does need her vote. The opposition does not need her vote. Why is her perspective on this of any consequence?
Secondly but more importantly, when Spender says everything has to be on the table, she lists a number of taxes. Did you notice what is not listed? Spending.
Nobody wants to talk about spending and waste and the giant Australian economy asphyxiating bureaucracy.
As I have said time and time and time again … there will be no political constituency for tax reform until there is spending reform.
Peter. I share your view. But never forget that it was John Howard who killed, buried and cremated the Australian federation.
most of the economic poison afflicting Australia today got its start under JWH.
structuring the GST resulting in stealing the states' income earning abilities
Renewable energy target
Commonwealth environmental protection laws
Childcare subsidies.
Private health insurance subsidies.
Baby bonus.
Work choices which was an egregious abuse of Section 51 which has laid the platform for most recently Burke's industrial relations changes.
and the gift that keeps on giving .... talking Malcolm Turnbull out of leaving parliament when he was replaced as opposition leader by Tony Abbott.
Ps - the real benefit of changes proposed by Kelty, would be to 'rein in' the huge proportion of housing stick, that is now held for speculative gain (debt funded) relative to 20th century levels. Creates artificial tax driven 'demand to own'.
IMO.