The Greens have done it again. When you put out a press release titled “Axing just 4 unfair tax breaks would plug Budget revenue hole” you are going to get me excited. With a yearly budget deficit of $35-40 billion I was desperate to see what 4 tax breaks can raise this amount each year.
But it is a Greens press release so according to the Greens the “Budget revenue hole” is the additional amounts that will be added to these already massive yearly deficits when the MYEFO is released this week. So they are not fixing the $35-40 billion problem, just the growth in the $35-40 billion problem!!!
But in case you are interested in what they are proposing here are their 4 ideas.
- Progressive superannuation taxation to replace the 15 per cent flat tax rate on pre-tax superannuation contributions from 1 July 2016. Earn less than $18,200 and your fund pays no tax, earn over $150,000 and your fund pays 30% tax (with a 4%, 15% and 22% rate in between)
- The removal of the capital gains tax discount for all capital gains realised on or after 14 December 2015 (but go back to indexation)
- Remove negative gearing for assets purchased from 14 December 2015
- Remove fuel tax credits (FTCs) for all industries except agriculture and other mining and coal related stuff
Lets be honest, these are massive changes… BUT THEY STILL ONLY KEEP US LOSING $35-40 billion a year!