Shorten's budget reply targets top earners

Francis Osborne
May 12, 2017

The change would mean that taxpayers can not deduct more than $3000 in payments to lawyers or tax accountants for managing their tax affairs.

Labor says that a combination of the pared back levy rise and the deficit levy would deliver an extra $4.5 billion over ten years "without putting the burden onto families earning modest incomes".

Deloitte's analysis of the impost of the Medicare Levy is all well and good, but it does ignore that high income earners - those earning more than $180,000 a year - would also receive a 2% income tax cut from the expiry of the Budget Repair Levy.

Deloitte partner David Watkins said people earning more than $100,000 comprised 18.3 per cent of the taxpayer population but would contribute nearly half the revenue from the extra Medicare levy.

The Labor leader claimed one of the biggest deductions they claimed was money paid to their accountants, which averaged $1 million. Who's budget proposals do you like more?

Labor has yet to confirm whether it will support the hike included in the 2017 budget which will cover a $3.8 billion gap in funding for the National Disability Insurance Scheme.

The banks knew they could run over the top of this weak prime minister, he said. "I'll give them a royal commission".

The federal opposition leader has also committed to keeping the coalition's budget fix levy on high-income earners, and says his party will back a $6.2 billion tax on the big banks.

Support for me shows many share my views over Sharapova: Bouchard
Former world champion Maria Sharapova's fall from grace and her subsequent comeback to tennis has been marred with controversies. Against Mladenovic in Stuttgart, Sharapova had three break points to earn a shot at closing the match in straight sets.

Shorten said that since budget night Labor had identified $1 billion in measures it would not support, including the $170 million set aside for a marriage equality plebiscite to which the Senate has refused to agree.

In his budget reply, Shorten said: "This is a recipe for fiscal recklessness on a grand scale".

The crackdown would reportedly raise $1.8 billion over a decade and would affect less than 1 per cent of taxpayers.

But the analysis from Deloitte shows that while millionaire taxpayers - those earning more than $1 million a year - comprise just 0.4 per cent of all Australian taxpayers, those taxpayers would contribute 7 per cent of the extra Medicare levy.

Finance Minister Mathias Cormann said Mr Shorten's speech was full of political rhetoric but short on a plan to grow the economy and create jobs.

He said Labor's numbers did not add up and it would put the triple A credit rating at risk.

Shorten said Labor would crack down tax evaders hiding funds in offshore accounts.

Other reports by TheDailyFarc

Discuss This Article