Labor leads the way on structural reform
Labor’s responsible reforms to negative gearing and capital gains tax will improve the Budget by around $600m in the first year and grow to deliver an $8b fiscal dividend by the end of the medium term period.
Shadow treasurer Chris Bowen said today, on the other hand the Turnbull government’s $50b giveaway to big business costs the Budget $200m in 2017–18, and over the decade will become a drain on the Budget to the value of $13b.
“Over time,” Bowen said “Labor’s policies increasingly improve the Budget bottom-line, while theLiberals’ policies damage the Budget bottom-line.
“Labor will bring the Budget back to balance in the same year as the Liberals.”
“The differing approaches to fiscal repair between the two major parties this election could not be more stark.
“The Liberals’ Reagan-esque approach of delivering tax cuts for big business and hoping it will trickle down through the economy will blow an ever increasing hole in the Budget bottom-line.
“Labor will undertake responsible reforms in areas such as negative gearing and capital gains tax and will close tax loopholes to deliver ever increasing improvements to the Budget bottom-line,” he said.
Based on current Budget forecasts, Labor will bring the Budget back to balance in the same year as the Liberals.
“Labor will deliver structural improvements that provide long term outcomes.”
Shadow finance minister Tony Burke said Labor’s plan involves responsible medium term structural repair to the Budget while the Liberals’ plan is to rely on measures that will never pass parliament.
“Labor is undertaking responsible fiscal repair while properly funding schools and Medicare, whereas the Liberals are cutting funding to schools and Medicare to give a $50b tax cut to big business,” Burke said.
“Labor has been upfront about our Budget decisions, and we will keep to our fiscal rule of having more improvements to the Budget bottom-line than spending over the medium term.
“Labor will deliver structural improvements that provide long term outcomes and undertake Budget repair that’s fair — the Liberals are doing the exact opposite,” he said.
