Treasurer threatens tax hike to fund NDIS
February 15, 2017
News.com.au
Treasurer Scott Morrison has threatened to increase taxes if a raft of welfare cuts worth billions of dollars are blocked by the Senate.
The government expected to generate $5.6 billion in savings through its welfare omnibus bill - which appears certain to fail - earmarking $1.6 billion for childcare fee subsidies and the remaining $4 billion for the National Disability Insurance Scheme.
"If you don't fund it (the NDIS) by getting welfare under control, you've got two other options, increase taxes or increase debt," Mr Morrison told News Corp.
Labor, the Greens, the Nick Xenophon Team and Jacqui Lambie have all signalled they will reject the bill, leaving only One Nation in favour.
The treasurer said price fluctuations meant the government could not rely on a spike in iron ore revenues to bankroll spending and achieve structural change.
"If the parliament is going to insist that the government spend more and more money, particularly on welfare, then someone has to pay for that." he told Sky News Business on Tuesday.
There were only two options to do so, and finding savings was the government's first preference.
"But if you don't do that, you've either got to have higher debt - which is a tax on your children - or you have to do it with other revenue measures.