Comments in response to the Henry Tax Review 2-05

2 May 2010

TRANSCRIPT OF THE HON. TONY ABBOTT MHR

COMMENTS IN RESPONSE TO THE HENRY TAX REVIEW,

SUNDAY NIGHT, CHANNEL SEVEN

E&OE……………………….…………………………………………………………………

The Coalition believes in lower, simpler, fairer and fewer taxes so that workers can earn more and keep more, and less of the family budget disappears into high mortgage interest rates.

What’s missing from the Government’s response to the Henry Review is any commitment to lower taxes. Its heart is a $9 billion a year slug on Australia’s most successful industry. It’s another Great Big New Tax like the ETS that Mr Rudd believes in but won’t talk about until after the next election.

Everyone expects to pay more as they earn more. No one should expect a penalty tax just because they’re very good at what they do. Putting a great big tax on the mining industry is like handicapping our most successful athletes. It’s bound to drive investment and jobs overseas.

But higher taxes are the inevitable result of a Government that’s addicted to spending.

Dr Henry has done a professional job reviewing Australia’s vast and complex tax system. 

His recommendations on superannuation and national savings should not have been ignored. His recommendations on improving the welfare system should not have been ignored either.

But he’s opened the door to possible death duties. The Coalition rejects that. He’s opened the door to state taxes on the family home. We reject that too.

But the Government’s response to Henry has been a tax grab, not tax reform. It’s been a tax fiddle, not a tax cut.

There’s a $3 billion tax cut for business paid for by a $9 billion tax grab on the companies that saved us from the Global Financial Crisis. 

The two per cent cut in company tax will be eaten up by the three per cent tax on payroll to fund future superannuation. Many small businesses won’t get the cut but all employers will pay the extra superannuation tax.

For workers, this means lower pay now so the Government doesn’t have to pay pensions in the future. For business, it just means $20 billion in extra costs that will have to be paid for.

The Rudd Government has proven that it can’t protect our borders and can’t safely insulate roofs or build school halls without rip-off after rip-off. Why should people trust Mr Rudd with more revenue when he has taken the Howard Government surplus of $20 billion and turned it into a $50 billion debt?

The Prime Minister says that he’s committed to a fairer tax system. But he was committed to dealing with climate change too. If he’s walked away from the “greatest moral challenge of our time” how can anyone trust him to keep commitments on tax?

In Government, the Coalition delivered lower taxes for everyone. Our policies on tax will be released in good time before the election but I make this undertaking now – we will reduce debt and get our economy back on track. The economy will always be stronger and taxes lower, simpler and fairer under a Coalition Government. 

[ends]

Source: TONY ABBOTT