Archive for the ‘Working Families’ Category

Income Tax Reform: why not for working families?

06/08/2010

MEDIA RELEASE: Election 2010: Darren Churchill – Taxation spokesperson: Friday, 6th August 2010

Income Tax Reform: why not for working families?

The Australian Democrats announced today a radical income tax reform to improve equity, simplicity and efficiency.

The party’s tax spokesperson, Darren Churchill of the ACT, said those earning less than $25,000 under this plan would not be taxed.

“The tax-free threshold has remained at $6 000 for a decade. It makes no sense to be taking tax from those well below the poverty line then handing it back in rebates, offsets and other welfare.

“This will make life much easier for employers, casual and part-time workers, as well as for others on low incomes.”

The Democrats plan would see the threshold indexed automatically so it maintains its value and people on low incomes don’t keep getting caught in the tax system

The tax base would be broadened by:

•Removing unnecessary tax deductions and concessions such as FBT concessions for company cars and other salary packaging, and negative gearing deductions

•Remove the perverse FBT ‘liability’ rate that diminishes once thresholds are exceeded, encouraging employees to travel more to increase the total number of kilometers travelled each year in their company car

•Reforming capital gains tax so it is highest for speculative gains and lowest for long-term, productive investment

•Closing tax loopholes

•Simplifying the tax system

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

“The Labor Government says a lot about working families but it has lost its way on promised tax reform for them.”

“Our income tax plan would deliver 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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