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Income Tax Policy: better, simpler, fairer

18/08/2010

MEDIA RELEASE:Election 2010: Wednesday, 18th August 2010

Darren Churchill – Taxation spokesperson

Income Tax Policy: better, simpler, fairer

The Australian Democrats have embraced radical income tax reform with a plan to improve equity simplicity and efficiency.

The party’s tax spokesperson, Darren Churchill of the ACT, has restated his party’s plans in relation to a tax reform whereby low-income earners are not taxed and the tax base is broadened by reforming Fringe Benefits tax and Capital gains Tax.

“We want to make the tax system fair so that people can live more affordably” said Mr Churchill

“The tax-free threshold has remained at $6 000 since the year 2000. This has been despite Australian Democrats calls for it to be increased. We want to increase it to $25 000 by indexing it over time. This would involve the systematic removal of rebates and offsets, making the system fairer and less complex.

“It would mean that eventually a person earning less than $25 000 would pay no income tax.” Mr Churchill continued. “This will make life much easier for casual and part-time workers, as well as for others on low incomes.”

The Australian Democrats are also calling for indexation of income tax thresholds, more equity in the superannuation system by lowering taxes at the lower end of the earning scale and increasing them for the wealthy.

“Our income tax plan means lower effective tax rates for lower and middle income earners, a more efficient system with less loopholes, and removal of the tax traps for people on welfare who work part-time or who are trying to move back to work.” concluded Mr Churchill.

Further comment: Darren Churchill ph. 0412 196 473

(Full copies of the Democrats’ action plan for income tax are available on request)

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