Senator the Hon. Mathias Cormann
Minister for Finance
Date: Wednesday, 9 July 2014
Yet again Labor have proved their inability to make responsible Budget decisions. Today, Labor voted against their own decision in their final Budget to defer the second round of personal tax cuts linked to the carbon tax.
In the 2013-14 Budget, Labor announced that they were deferring personal income tax cuts, which were due to take effect on 1 July 2015. These tax cuts were intended to compensate for an increase in the carbon price, which was not due to occur until 2018-19.
Labor booked the $1.5 billion in savings stemming from this, but did not legislate it.
It is clear that Labor is in denial about the state of the Budget and the imminent repeal of the carbon tax. When the carbon tax is gone, there will be no need to provide additional compensation for a tax that will not exist.
The Coalition has always been clear, since before the election that we would support this Labor saving.
A first round of tax cuts to compensate for the introduction of the carbon tax has already been delivered. The Government is keeping the current carbon tax related personal income tax thresholds and the fortnightly pension and benefit increases.
We will deliver further savings of $550 for the average Australian household of next year with the removal of the carbon tax.
Labor must immediately outline how they intend to fund their own budget black hole.
Karen Wu 0428 350 139