GOVERNMENT SQUIB – 2 ½ OUT OF 138 RECOMMENDATIONS ADOPTED
03-May-2010
“After two years and a $10 million, 1000 page tax review the Rudd Government has squibbed on making the hard decisions on Australia’s future and adopted only two and a half of the 138 Henry Tax Review recommendations,” Federal Member for Indi, Sophie Mirabella, said.
“In fact, most of the government response focused on developing new spending measures; not a single tax has been abolished.
“This isn’t the root and branch tax reform that Kevin Rudd and Wayne Swan promised, it is a copout with no reform and slugging our most productive industry,” Mrs Mirabella said.
“They have rejected outright only 27 of those 138 recommendations, with issues such as volumetric tax on alcohol put on the back burner.
“Simply saying there is currently a wine glut and a volumetric tax would harm the industry now, is not ruling it out. It’s just deferring the bad news to our local wine industries, to be hauled out if the Labor Party wins the next election.
“The new tax on mining is an unfair and new way for Mr Rudd to feed his spending addiction
“This new tax will damage the manufacturing sector, reduce blue collar jobs and reduce retirement and superannuation incomes of those with mining stocks. Kevin Rudd is killing the goose that lays the golden egg, with mining activity bound to go offshore.
“And as is always the way with this government, their sweeteners come with a hook. For example the drop in company tax isn’t likely to happen until after two elections. The Henry Review recommended against increasing super to 12 per cent stating that retirement savings were better increased by policies like halving the tax on super, which the government has ignored.
“The Labor Party has shown itself to be incapable of making the hard reform decisions to secure Australia’s future.
“We all know how important the reform decisions of the Howard government were to set up Australia in a strong financial position, making it able to withstand the worst of the global financial crisis.
“Unfortunately for all of us, Mr Rudd has no such long term vision.”
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