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Labor and Liberals plunder retirees!

Labor and Liberals plunder retirees!

They are coming to steal anything you have left!

The Turnbull government was very pleased and unapologetic when they shafted retired part pensioners by moving the assets goal posts by stealth placing hundreds of thousands of pensioners below the poverty line—well below! Some of those financially wounded might have toyed with the idea of voting for the idiot Shorten as a protest against Team Turnbull. If this article doesn’t change your mind to vote for a third option, or your dog, or not at all, I’m buggered if I know what will!

Bill Shorten’s tax hit on self-­funded retirees will underwrite a spending spree that ­includes cash handouts for low-­income earners, with the scrapping of franking credit refunds forming the biggest revenue raiser in Labor’s $30 billion short-term tax ­measures. As Labor Treasury spokesman Chris Bowen prepared to outline today Labor’s plan to match the government’s early return to surplus and tackle the nation’s debt bomb, Scott Morrison accused the opposition of using older Australians to fund a spending splurge.

Source: News Corp

Retirees to underwrite Labor spending splurge

Treasury and parliamentary budget office ­estimates suggest that Labor’s tax hit from scrapping imputation credit refunds — a policy that will largely target self-managed super funds — will amount to a third of Labor’s new tax grab over the current forward estimates, to 2021-22.
The Treasury and PBO numbers, which have been disputed by the opposition, show the retiree tax raising $10.7bn over four-year budget forward estimates, working on a baseline year of 2018-19.
A policy to reverse the legis­lated company tax cuts for businesses with between $2 million and $50m in turnover, and not proceed with the remaining cuts proposed by the government, would raise $6.2bn in the four years to 2021-22, although Labor has not revealed yet what its election policy will be.
The re-imposition of the 2 per cent debt-and-deficit levy for high-income earners — taking the effective tax rate from 47 per cent to 49 per cent — would raise $5.25bn. And the winding back of negative gearing tax breaks for property investors would raise $1.35bn over the first four years. A total of $5.6bn would also be raised from superannuation contribution taxes and changes to family trusts.

Mr Morrison claimed that this meant retirees would be contributing more to Labor’s spending plan over the first three years of an ALP government than the reversal of company tax cuts, the winding back of negative gearing or tax rises for high-income earners.
Mr Bowen, in a National Press Club address today in response to last week’s federal budget, will pledge to return the budget to balance in the same year as the ­Coalition — 2019-20, a year ­earlier than originally forecast — while returning larger surpluses than the Coalition over the following years.
Labor’s costings would be overseen by an independent ­expert panel.
Mr Bowen will admit to preparing for a “backlash” over Labor’s tax policies, but say it is the right thing to do. “Australians probably didn’t know that you can get an income tax refund, even if you didn’t pay any income tax, and can get the tax paid by a company you own shares in repaid to you so that no net tax is paid. Removing a concession worth $6bn was, we knew, bound to cause a backlash,” he will say. “But we didn’t do these things for fun.”
Mr Bowen will add that Labor will go to the election achieving budget balance in the same year as the government while delivering bigger cumulative budget ­surpluses over the forward estimates, as well as “substantially” bigger ­surpluses over 10 years.
“The majority of savings raised from our revenue measures over the medium term will go towards budget repair and paying down debt,” Mr Bowen will say in his speech. What the eventual savings will be is yet unknown as Mr Bowen has not committed to whether Labor would repeal any or all of the legislated company tax cuts for small to medium-sized businesses. Over the medium term of 10 years, the government claims that Labor’s extra tax revenue would amount to $219bn. But Mr Morrison said extra taxes raised over the first three years by a Labor government would be $30bn.
“The biggest slug will be on retirees and pensioners, with more than $10bn coming from their plan to rip away their tax refunds they receive from their investments,” Mr Morrison said. “If elected Labor’s biggest tax in their first term will not be on multinationals and big banks, as they pretend, but on retirees and pensioners.”
Mr Bowen said Labor’s budget priorities would be to “deal with debt and deficit” and “fund policies we regard as important for economic growth”.
In his fifth post-budget reply address, Mr Bowen will say the majority of savings raised from Labor’s revenue measures over the medium term will go towards budget repair and paying down debt.
“But we are announcing today that the net result of those policies will be a better budget bottom line in the short term and bigger surpluses in the long term,” he will tell the National Press Club.
In an attack on the Turnbull government, Mr Bowen will declare that a surplus not reaching at least 1 per cent of GDP until 2026-27 would fail to “adequately protect Australia against the ­potential roiling seas of inter­national uncertainty”.
“The greatest failure of the government’s official ‘fiscal strategy’ has been the persistent watering down of its 2013 commitment to get to a surplus of at least 1 per cent of GDP by 2023-24,” Mr Bowen will say. “The government’s fiscal strategy was originally to reach a surplus of 1 per cent of GDP by 2023-24. This was then downgraded to a surplus of at least 1 per cent of GDP ‘as soon as possible’. Now, on the government’s current numbers, they still don’t get there for eight years, in 2026-27.”
Labor will also announce today that it will engage a “panel of ­expert and eminent Australians to review our costings and assure their efficacy”. The panel will include Bob Officer (a finance and accounting academic), Mike Keating (a former Department of ­Finance and Department of Prime Minister and Cabinet secretary) and James Mackenzie (businessman and fellow of the Institute of Chartered Accountants and Institute of Company Directors). They were engaged by Labor ahead of the 2016 election.
“The costings panel provide a final assessment and verification of our budget bottom line, over the forward estimates and the ­medium term,” Mr Bowen will say. “The panel will also assess the ­robustness of our costings and the assumptions that underpin them.”

{ 20 comments… add one }
  • Ian 16/05/2018, 8:07 am

    I wish you could vote for a government that would just leave you alone with your own money instead of dreaming up more ways to steal it from your grasp.
    If they want fairness in taxation, then increase GST to 20% over the next ten years and stop all income tax at a matching rate.
    Those with cash will spend it, generating taxation income, those without will pay less or none. At least every family will pay tax that way, not just the rich.
    (The need for the 10 year slide is to allow self funded retirees to spend down their assets before they lose 10% of their value.)

    • DT 16/05/2018, 8:30 am

      Good plan.

    • Neville 17/05/2018, 1:53 am

      Interestingly, that approach has already been modelled and worked out. I don’t recall the actual number, but it was low. Something like a simple 2% on any and every transaction anywhere at anytime apparently generated quite a lot more than the govt’s total tax take at present

  • Aktosplatz 16/05/2018, 8:44 am

    As Tony Abbott has repeatedly pointed out, government spending must be reigned back instead of seeking more taxation.

    They (liberal and labor) won’t listen though mainly because it’s from Tony Abbott.

    • Lorraine 16/05/2018, 9:00 am

      when his Government tried to do that in 2014 the media and Labor and the Greens said it was the most unfair budget ever. They refused to pass the bills that would bring down debt. All of Canberra undermined all of his achievements from stopping the boats to ending the carbon tax, the mining tax, and a road to surplus.
      Canberra the place that is selfish for only themselves. Free loaders live in Canberra

      • Aktosplatz 16/05/2018, 2:41 pm

        Exactly right, Lorraine. The liberal party will rue the day concerning the way they treated Tony Abbott.

  • angry 16/05/2018, 9:03 am

    No thinking person would vote for DUMB (COALITION) or DUMBER (ALP/GREENS)……

  • DT 16/05/2018, 9:35 am

    If our politicians reverted to being representatives of the people, governing for the people, the debt and spending problem could be improved by cancelling so called renewable energy subsidies.

    Why must Australia be taken down the same road to economic ruin that is now obvious in countries that began their experiment with wind and solar systems decades ago and today building new HELE technology power stations and abandoning RET and subsidies?


  • nev 16/05/2018, 9:59 am

    Looks straight forward to me.
    The Turtle will be crowned the worlds greatest treasurer, debt growth will be in inverse proportion to projected savings. A Nobel muted for each member of a labor front bench and the stick insect would ascend to the UN.
    What could go wrong?

    • angry 16/05/2018, 10:12 am

      the “stick insect” should be sprayed with some strong insecticide………..

      • nev 16/05/2018, 4:21 pm

        It may present as an insect angry but is actually vermin. Vermin takes 1080, usually attached to a carrot.
        If she thought the carrot was free (taxpayers Expense), she’d be a pushover

  • Clarion Call 16/05/2018, 11:25 am

    Angry: Bishop is a ridgy didge insect previously undiscovered as a species. Characterised by its ability to travel huge distances and flap around lots of foreign insect mounds with its mouth perpetually open. Hard to get rid of, unfortunately.

    • Lorraine 16/05/2018, 1:39 pm

      hasn’t bred so that is something a one off only.

      • Joe Blogs 16/05/2018, 5:22 pm

        You people sound as though you want to pin the SI to a board and pull her wings and legs off.

      • Neville 17/05/2018, 1:56 am

        NO! .. mostly .. well, OK then … yes.

  • Clarion Call 16/05/2018, 2:47 pm

    Sorry, Lorraine; there’s more of these parasite pests being groomed by Labor and the Libs to take over when Missy Stick flaps and flies no more. They’re like cockroaches…you’ll never kill ’em off. They’ll just keep coming! Grrrrrrrrrrr!!

  • Bwana Neusi 16/05/2018, 8:53 pm

    “Scott Morrison accused the opposition of using older Australians to fund a spending splurge.”
    This from the man that took away the old age pension from quarter of a million superannuants who suddenly failed the revised asset test (courtesy of ScoMo)

    He then has the audacity to criticise opposition for following his lead.

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