Australian Greens model millionaire taxes for Tony Abbott and his rich friends


Taxing trusts as if they were companies, and applying a new top marginal tax rate on incomes over $1 million, would raise billions of dollars for the Commonwealth budget and alleviate pressure to slash welfare programs for the genuinely needy, the Greens have said.

The country's third political force has commissioned an updated independent costing of the two proposals originally put forward by the Parliamentary Budget Office, as an alternative to a raft of harsh spending cuts being considered by the Abbott government.

The move has been calculated to illustrate the ways that Australia's rich and poor are being cast in the Abbott government's narrative of a budget emergency.

These measures have yet to be announced but speculation is rife in Canberra that the first Hockey budget could contain decisions to tighten eligibility for the age pension, make GP visits more expensive through the application of a co-payment by patients of $6, and even see a crackdown on eligibility for the Disability Support Pension.

The PBO modelling found the move to scrap the generous taxation treatment of discretionary trusts, of which there are some 550,000 in operation at present, would raise some $3.3 billion over the four-year budget period from July 1, this year.

However it acknowledged in its costing documents, obtained by Fairfax Media, that its modelling was "considered to be of low reliability" due to a series of inherently uncertain assumptions about future behaviour.

This could include individuals abandoning trusts and using other measures if the taxation arrangements were no longer regarded as sufficiently attractive.

Another almost $1 billion would be gained in revenue by the addition of a 5 per cent super-rich tax on the tiny minority of people with incomes over $1 million - defined as taxable income plus reportable fringe benefits.

The PBO modelling provided to the Greens party shows this proposal has been costed as adding $926.6 million to the underlying fiscal balance over the four budget years from July 1, 2014.

The tax take from this measure would gradually increase through bracket-creep expanding its eligibility and thus causing it to reap $339.7 million in the final year, 2017-18.

Acting Greens leader Adam Bandt said it was unacceptable for the government to be shaping up for a major hit on the vulnerable, while the well-off were allowed to structure their affairs to minimise tax, depriving the budget of much needed revenue.

“The wealthy elite should take a haircut, not those who rely on bulk-billing to see a doctor,” Mr Bandt said, declaring that Prime Minister Tony Abbott was "backed by society’s ‘1%’".

“If Joe Hockey and Tony Abbott let their millionaire friends off scot-free while attacking pensions and essential services, they will have declared ‘class war’ on the country and divided Australia," he said.

“If the ‘age of entitlement’ is over, as Joe Hockey says, he should start at the top. Joe Hockey should balance the budget fairly by implementing these independent costings provided by the Greens," Mr Bandt said.

The combined effect on revenue of the two measures would be close to $4.3 billion over four years with the potential to raise more beyond the budget period.

Trusts run by farmers would be exempt from the Greens' changes.

But the ideas are unlikely to find favour with either of the major parties - neither of whom want to be associated with implementing new taxes.


http://www.smh.com.au/federal-politics/political-news/australian-greens-model-mi...

Let's just tax the lazy, worthless Greens who never contribute to society but see fit to block roads, disrupt people trying to go about their lives and generally waste our time while getting a nice govt dole payment?

Without sharing the load, the cons are just enacting class warfare against the lower and middle income bracket.

Once again Greens reveal they are the party of the majority while the cons are the party of the minority.

Bam wrote on Apr 23^rd, 2014 at 7:18pm:


Yeah, they don't do much - just mortgage their homes to start the business at considerable risk to themselves then employ staff and thereby help the community prosper. Lousy bludgers!

Armchair_Politician wrote on Apr 23^rd, 2014 at 7:21pm:



Rather than share the load you want to cripple small businesses. Every person that pays abbott's doctor tax spends less in the retail sector.

____ wrote on Apr 23^rd, 2014 at 7:24pm:


Welcome to life under the carbon tax, where things like electricity cost more and prevent people from spending as much (or at all) at shops.

____ wrote on Apr 23^rd, 2014 at 8:03pm:


Not fully compensated.

____ wrote on Apr 23^rd, 2014 at 8:15pm:


Why is compensation even needed for a tax? Absurd: collect it with one hand, give back with another. What's the point, then? Proof the carbon tax is a useless, costly lie.