Australia: Australian Opposition Would Not Increase Tax Burden
20 August 2013
Posted by: Author: Mary Swire
Author: Mary Swire
"There will be no overall increase in the tax burden whatsoever" under a Coalition government, Tony Abbott has said.
Speaking during a television interview with ABC, the leader of the Australian Liberal party said: "we know we've got a challenge ahead of us but we also know if we can get taxes down, if we can get productivity up, we get growth up and that means revenue up."
Although Abbott criticized the ruling Labor party for introducing "three new or increased taxes just before the election starts," he admitted that a future Coalition government may have no choice but to retain two of them. Abbott had previously said that he may be forced to keep Labor's four years' worth of planned tobacco excise hikes, but has now acknowledged that the bank levy may also have to stay.
One area in which the Coalition would not follow in Labor's footsteps, however, would be in the imposition of the fringe benefits tax on company cars. This, according to Abbott, "is a disaster for a motor industry which is already under pressure. We're not going ahead with that."
When asked by presenter Leigh Sales if Abbott accepted that "if you don't keep the first two items that's going to be another AUD5bn (USD4.6bn) worth of savings you'll have to find," Abbott said he did. He added that before the election on September 7, the Coalition would release details of its plans for cuts to spending but stressed that he would not hike the overall tax burden.