House debates

Monday, 21 May 2018

Questions without Notice

Taxation

2:09 pm

Photo of Bill ShortenBill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | Hansard source

My question is to the Prime Minister. Will the Prime Minister support Labor's bigger, better, fairer income tax cuts that will give a teacher earning $65,000 a year a tax cut of $928 a year, almost double the amount they've been promised by the government?

Comments

Tibor Majlath
Posted on 22 May 2018 12:00 pm (Report this comment)

Labor's bigger, better, fairer income tax cut is paid for by older self-funded Australians who would no longer get back the tax paid on their share earnings under a Labor government.

Shorten claimed most people affected by his 'fair' policy on imputation credits have super balances of $2.5 million. Labor claims it is cracking down on tax concessions at the top end. The top end?

Many self-funded retirees don't have millions in super. Some funds are lucky to have anything near $500,000 and a small supplement from share income helps keep them from drawing on government welfare.

Many of these retirees depend on the tax back from imputation credits as they cannot take advantage of the generous government super schemes of politicians. Not to mention (twice?) yearly indexed parliamentary salaries.

But Labor lumps all retirees together as wealthy whom Shorten claimed don't pay tax. We all pay tax in one form or another (rates, GST, petrol, insurance, etc.) until the day we die.

Why is this taxable income from shares treated differently from other income by Labor? Tax is withheld at 30% if you provide your tax file number, and at 47% if you do not.

Shayne Neumann's (Blair, Australian Labor Party, Shadow Minister for Immigration and Border Protection) said it was critical that this government look after older Australians. Is Labor's policy on imputation credits really looking after older Australians who aren't all millionaires?

Fairness is meaningless when a policy does not explore all its ramifications.

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