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Labor commits $7bn in spending from tax proposals

Tax

Labor’s proposed tax changes will go towards close to $7 billion in spending on childcare subsidies and dental care, as revealed on the eve of pre-poll voting.

By Jotham Lian 8 minute read

Opposition Leader Bill Shorten revealed on Sunday that, if elected into power, he would commit $4 billion to subsidise childcare, $2.4 billion in dental care for aged pensioners and $537 million to fund an increase in childcare workers’ wages.

The spending comes on top of Labor’s previously announced $2.3 billion Medicare cancer plan, bringing up total spend to about $9.2 billion so far, well within Treasury’s costing of Labor’s proposed tax changes at $387 billion over 10 years.

Labor’s proposed tax changes include an end to cash refunds for excess franking credits, a limit to negative gearing, halving the capital gains tax discount, introducing a 30 per cent trusts tax rate, and opposing the government’s personal income tax cuts.

“It is time for us to draw the threads of our story together to end the intergenerational unfairness in our tax system,” Mr Shorten said on Sunday.

“The current government, the Liberals and the Nationals, cannot do what we have just promised.'”

Prime Minister Scott Morrison continued to focus on the increase in taxes under a Labor government.

“It’s a choice between a government that has demonstrated that it knows how to manage money and a Labor Party under Bill Shorten who has demonstrated that they can’t control what they spend, so it means they can’t control what they tax,” he said.

Jotham Lian

Jotham Lian

AUTHOR

Jotham Lian is the editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.

Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.

You can email Jotham at: This email address is being protected from spambots. You need JavaScript enabled to view it. 

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