Labor Blog

Abbott Backflips on Tax Cuts Again

Penny Wong posted Friday, 3 February 2012

Tony Abbott has today again refused to confirm he will have tax cuts in his first term – stating again that they will only be “in prospect”.

This is despite contradictory statements from Mr Abbott’s office following his National Press Club address, and Joe Hockey telling ABC Radio National on 1 February: “... we will have tax cuts in our first term.’’

This morning Mr Abbott changed his position again on the Today Show:

HOST: So why then did Julie Bishop only call it an aim?

ABBOTT: Well we were then saying, by the end of the first term of a Coalition Government, further tax cuts would be in prospect. That's what I said at the Press Club.

This is an economic team that has no clear plan for tax reform, or for managing the economy.

Tony Abbott says tax cuts are only in prospect, Mr Hockey says they will happen and Ms Bishop says they are only an aim.

The Labor Government has delivered $47 billion of personal tax cuts which have reduced the tax paid by someone earning $50,000 by 18 per cent.

Under Labor, all taxpayers with incomes of up to $80,000 will get a tax cut, with most receiving at least $300 per year. The Opposition will claw back these tax cuts with no guarantee of a tax cut in return.

The Opposition has also admitted they will claw back the real pension increases Labor is delivering this year for 3.4 million pensioners, as part of the Clean Energy Future package.

Under Labor, pensioners will receive a net increase in their pension payments over and above the expected average impact of the carbon price. The Liberals have confirmed 3.4 million pensioners will lose about $338 per year for singles and about $510 per year for couples combined, if Tony Abbott is Prime Minister.

We know the Opposition has admitted to a $70 billion hole in their finances, so it is not surprising that they are having an internal fight about not being able to afford tax cuts.

Not only are taxes lower under Labor, so are interest rates. A family with a $300,000 mortgage is now paying $3000 less a year than they were paying under the Liberals.

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8 Comments

kevllbeback from none , non Saturday, 4 February 2012, 18:04

Think labor is bad, just wait till the coalition get back in power !!
Abit's will pander to his rich mates as never seen before,unfortunatley Gillard has caved into the rent seekers,who never vote labor in the first place.This is her downfall.
kevllbeback from none , non Saturday, 4 February 2012, 18:04

Unfinished business! Monk is going to finish what Howard couldn't, privatise govt agencies such as Centrelink, remember the user pays,pensioner's etc will be slugged a portion of entitlements to have claims processed,more money for Abit's rich mates
GNCORP from melbourne , victoria Saturday, 4 February 2012, 14:04

They call it an aim so they don’t have to actually promise anything, so when they don’t deliver they can say we did not promise it as we were just thinking about it. It is just another way for the Liberals to say we have no policies & plans!
chris1948 from Melbourne , VIC Saturday, 4 February 2012, 01:04

No Carbon tax=no necessity for compensation.
But as below ' for those in State Gvt Housing, some if not all of the States have now clawed back up to $20 per fortnight of the one-off increase, more than the carbon Tax compensation figure above.
Dillyuk from Wamberal , nsw Friday, 3 February 2012, 23:03

4 If employers want money spent in thier businesses, then give your employees a decent job, with decent wages, we are all having to pull in our belts, so why don't you. Less of what is a tax deduction. No tax, no infrastructure, police, nurses P Serv
Dillyuk from Wamberal , nsw Friday, 3 February 2012, 23:03

3 The employers have got to realise that people are paying down their debt, because they do not know when they are going to be sacked. They don't go on holiday, no new cars, no designer labels in thier wardrobe. Is this the same for the employers?
Dillyuk from Wamberal , nsw Friday, 3 February 2012, 23:03

2. The employees, have little cash, because the others in the chain have taken most of it.
They are casual, therefore they cannot get a loan, mortgage etc. Then the businesses are complaining no one is spending, they have no money to spend.
Dillyuk from Wamberal , nsw Friday, 3 February 2012, 23:03

1. Abetts goes on about restrictive work practices, he wants a free market, that means, a private employment agency, a contracter, then an employer. Each one gets their cut and what is left is thrown to the employees.