Paying for promises

Kaye Lee

9 years ago

It seems obvious that Joe’s $25 billion promise to cut income tax was made in haste in the hope it could influence the Canning by election because he has no idea how he is going to pay for it – all he knows is that rich people pay too much tax. One wonders if Joe understands the concept of progressive taxation.

As Hockey valiantly tries to get the sick to fix his budget woes by suggesting we need to broaden the base for GST to include health, and Abetz suggests further possible savings could be found in the federal public service (read less services and more unemployment), a quick look at a few recent news articles shows the government’s spending priorities.

“Australia is projected to subsidise coal, petroleum and gas consumption by $41 billion in 2015, the International Monetary Fund said last month. That is the equivalent of 2 per cent of Australia’s annual economic output. Fairfax Media understands the government has been considering the Adani mine for support under its $5 billion northern Australia infrastructure fund.”
“Prime Minister Tony Abbott is set to announce a $20 billion plan to build future frigates in Adelaide as the government looks to restore its political fortunes in South Australia.Mr Abbott will guarantee the ships will be built in the South Australian capital as part of an $89 billion naval ship and submarine building program.”
“An analysis of last year’s budget found that in the 2014-15 financial year, the Australian Government spent $2.91 billion on detention and compliance-related programs for asylum seekers who arrived in Australia by boat. To put Australia’s spending in perspective, the total expenditure for the United Nations High Commissioner for Refugees (UNHCR) in 2014 was AUD$3.72 billion. “
“At a stakeholders’ breakfast in Perth on Saturday morning, Mr Abbott announced the $10 million Federal Government contribution towards the $60 million Lathlain Park precinct redevelopment. The project will include a training and administrative facility for West Coast which is expected to become the Eagles’ new headquarters within three years.”
“The Rich Mates Act amendment bill was introduced to Parliament on Thursday. Billionaires are desirous of an exemption from tax transparency laws, and the government is happy to oblige them because, if they are forced to disclose how much tax they pay, they apparently may be kidnapped. The real reason, however, for the Tax and Superannuation Laws Amendment (Better Targeting the Income Tax Transparency Laws) Bill 2015 is quite shamelessly paraded in the preamble: “These amendments will reduce the compliance costs … the amendments will reduce the need for such private companies to correct probable misinterpretation of the information and to manage reputational risk.” First there was the multinational mates’ deal of last year that sneakily unwound “thin cap” reforms. Now it’s the Rich Mates Amendment.”