Rudd’s tax review: Higher taxes and no benefits for Regional Australia
2nd May, 2010
The Rudd Government has squibbed the opportunity for major tax reform and re-affirmed its high tax, high spend, tax churn philosophy, The Leader of The Nationals, Warren Truss, said today.Faced with 138 recommendations from Treasury Secretary Ken Henry, Federal Labor has accepted only 2.5 of them. More than 100 recommendations are still awaiting any response from the Government, leaving all taxpayers and welfare recipients in uncertainty.
“This is most astonishing display of political weakness since, well, the Rudd Government’s incredible about face last week on its emission trading scheme,” Mr Truss said.
“Seven of today’s new announcements are either not covered by the review or actually opposed by Dr Henry.
“Mr Rudd promised us a ‘root and branch’ review of taxation. Instead, all we got was a fig leaf.”
The major concern for all Australians, but particularly those living in the regions, is the recommendations which have not yet been ruled out. They include:
• Three new taxes on the trucking industry;
• Basing all new road spending on economic assessment;
• Charging full energy equivalent excise on ethanol, biodiesel and LPG;
• A review of the zonal tax rebate based on a new definition of remoteness;
• A congestion tax on major city roads;
• A volumetric tax on alcohol, once the current wine surplus abates;
• Abolishing the duty free allowance for tobacco;
• A new cash flow tax on business, and
• Basing third party insurance on distance travelled.
“The small reduction in company tax for small business will be dwarfed by the impact of the Government’s increase in the superannuation guarantee rate – which Dr Henry recommended against.
“At least two-thirds of small business will miss out on the government’s tax cut anyway, as they are not companies or not profitable.
“And the 40 percent ‘super tax’ for the mining industry is payback for miners opposing Labor’s emissions trading scheme. The new tax will be a fatal blow for many Australian resource projects, setting back prospects for ongoing regional development.
“The Rudd Government is bereft of ideas. Now it has been given some, it has reverted to its default position of political cowardice and taxing the pants off any industry daring to make a profit,” Mr Truss said.
