Abbott’s taxing times

Could someone please tell the bulk of the mainstream media that Tony Abbott has a great big tax in store for us? It comes under the The Coalition’s Paid Parental Leave (PPL) scheme which will be funded by:

. . . a 1.5 percent levy on companies with taxable incomes in excess of $5 million. This will apply only to taxable income in excess of $5 million. The levy will affect approximately 3,370 out of 770,000 companies in Australia.

It’s hard to see a distinction there on the carbon price which is aimed at the largest 500 polluters in the country, which Tony Abbott calls a carbon tax, although it obviously isn’t.  But the media has let him get away with his absurd rants and to most of the populace it is now a dastardly tax.

Meanwhile, his PPL scheme is a levy. We should be returning fire and calling it a tax.

To date I’ve only found one article in the mainstream media that puts his PPL scheme under the microscope. It dates back to March 2012 when Tony Abbott was at the height of his ‘Carbon Tax Doomsday Tour’. The story has been dead since. Returning to the article, Samantha Maiden tried to put Abbott to the sword when she wrote in Adelaide Now that the PPL would ultimately have a greater negative affect than the carbon tax. The article is reproduced below and is a worthwhile read:

HERE’S a surprising fact about Tony Abbott’s paid parental leave plan that hasn’t attracted much attention: the new levy to pay for the scheme would hit more companies than the carbon tax.

Surprised? Consider the numbers. Julia Gillard’s carbon tax will be imposed on about 500 of the nation’s biggest polluters.

Abbott’s tax levy would hit an estimated 3300 businesses with a 1.5 per cent levy.

Isn’t that a great, big, new tax coincidence, to deploy Abbott’s favourite mantra ?

Let’s set to one side the world-class hypocrisy of Labor turning up its nose at the politics of “class welfare” on the schools funding debate while simultaneously diving in to slag off what it calls Abbott’s “Richie Rich” program for cashed-up working mums.

Much of the criticism of Abbott’s scheme is indeed centred on that generosity to a handful of wealthy women.

It would offer women a full replacement wage for six months funded by taxpayers, up to an eye-watering $75,000 for women earning $150,000 a year.

But even Labor concedes fewer than 500 women would gain access to the scheme that would not under their existing means-tested parental leave scheme paid at 18 weeks at the minimum wage.

Less attention, however, has been paid to the size of the Abbott scheme and the potential cost impacts for consumers.

Would a 1.5 per cent paid parental leave tax on electricity generators, for example, drive up power bills? By how much? Would Woolworths and Coles increase the price of milk and bread?

Is it possible that some low-emission, high-profit companies such as banks and retailers could actually pay more upfront under Abbott’s parental leave plan than the carbon tax? Wouldn’t that be hoot.

If the Coalition argues the cost impact would be modest, how does that stack up with their claims the carbon tax will be catastrophic?

And what happens if Abbott is elected prime minister but a hostile Senate dominated by the Greens will not allow him to wind back the carbon tax?

Would companies be forced to pay both the $5 billion carbon tax and the $3 billion paid parental leave levy? So many questions.

According to the last mid-year budget update, the carbon tax will raise $25 billion over three years, including an estimated $7.6 billion over the first year.

That’s substantially more than Abbott’s $3 billion paid parental leave scheme, but bear in mind there’s no compensation to cover cost-of-living impacts. The carbon tax by comparison will raise a lot of cash but it will also distribute $5 billion in tax cuts and welfare payments as compensation.

As the Coalition policy documents show, it would cost taxpayers a whopping $4.5 billion a year to run Abbott’s parental leave scheme.

It would be paid for by a 1.5 per cent levy on businesses with taxable incomes over $5 million.

There are also savings from rolling in the baby bonus scheme and family tax payments and replacing Labor’s scheme.

Don’t get me wrong. It was high time low and middle-income women had access to a paid maternity scheme. Abbott’s scheme is more generous for many families than Labor’s 18-week minimum wage scheme.

It’s a sign “the Coalition gets it when it comes to the modern Australian woman”, Abbott spruiked this week.

There are great arguments why parental leave should be a workplace entitlement, not a welfare cheque. By encouraging women to participate in work as a result of generous maternity provisions, there’s a strong argument that it’s a productivity measure.

In a win for women’s retirement savings, the Coalition paid parental scheme also includes the payment of superannuation contribution payments at the mandatory 9 per cent.

But if you think it’s cheeky that Abbott wants to bang on and on about the impact of the carbon tax while introducing a $3 billion levy on business to pay for parental leave, you are not Robinson Crusoe.

It’s an ordinary state of affairs when a probing analysis like this takes a back seat to Abbott’s scare campaign for months on end.

What do you think?

Mad Monk

Mad Monk (Photo credit: liamalexander)

77 comments on “Abbott’s taxing times

  1. A levy has the implication that it is something of a temporary nature..eg the Brisbane flood levy. So, if the coalition’s tax on business is but a mere levy, what happens next..are women going to stop having babies..

  2. Min, I think that the word “levy” doesn’t have the same connotations as does “tax”. Both tribes have used this to their advantage for years. It’s encouraging to note that even Abbott can’t stomach “a great new tax” when attempting to justify his great big new permanent levy on the largest companies in Australia to pay for a maternity levy that has some fundamental flaws.

  3. Hey is this article for real. When today Gillard and Crazy Pete announced an
    Education Policy costing $6- 10 Billion Dollars .
    Not a mention of funding source and not fully implemented till 2020.
    (pity about the kids currently at School)
    Sounds like a Bad Joke at the Stand Up Comedy Club .

  4. To pay for a scheme that is not necessary and adds to middle to upper class welfare.

    To be given to woman, who have and have had for years, access to private employers schemes, which can be very generous in themselves.

    We have Labor slowly clawing back upper class well fare and rebates by means testing. We have Abbott adding to the problem.

    I wonder if these women get both, or are employers let off the hook.

    Tax and levy are the same. Welfare and rebates are the same.

  5. Voyager, do not believe all you read,

    The scheme will begin in 2014, when present arrangements run out. It will be introduced slowly over 6 years.

    There will mean close cooperation between the Federal Government. it is doable.

    It will replace a system that is well and truly broken.

    It will be based on the needs of the child, not needs of private schools.

    It is supported by all experts.

    The money spent will be returned in full, with improvement in productivity.

    It will probably be funded with more means testing of welfare and other rebates.

    It should end the war between private and public schooling.

    is a exciting future for education in this country.

    Of course it cannot happen under Abbott. He would rather spend the money on unnecessary middle and upper class welfare and rebates.

    He would rather keep a scheme that is broken, adds to inequity and props up the private system, while letting the public system run down.

  6. This Government would probably have the worst record ever with running the
    numbers / staying within Budget. Will cost 10Bil Plus.
    Somehow the Scheme seems doomed before it starts. Currently the Feds only
    contribute 30% of Education funding with the States providing the other 70%.
    Gillard and Crazy Pete want the States to contribute more.
    Once again these two think money grows on trees – must be a Labor/Canberra
    Paradigm!

  7. How does this one sound: “Tony’s Toxic Tax”? – OK, it’s one syllable longer than the slogans he recites, but it might be worth Labor running with it.

  8. Well I have to say I’m absolutely astonished that the msm hasn’t been warning us about the implications of Liealot’s Great Big New Tax.

    And you’d think that champion of truth, justice and constant outrage, Anal Jones, would have been buying chaff bags by the hundredweight to bundle Liealot into, ready for his trip to the briny.

  9. Voyager attempts a “look over there at Labor” in trying to distract from the ‘look over here at yet another Abbott FAIL”.

    This Government would probably have the worst record ever with running the
    numbers / staying within Budget.

    Evidence Voyager? Just a meaningless throwaway line straight out of the Coalition attack book.

    I think you will find that record actually belongs to Howard, so much so Costello went to court to stop budget vs actual expenditure numbers from being released.

    But the worst record must go to Abbott in opposition. Without being in government he’s already blown over $70 billion in unfunded liabilities and unless he like his State counterparts is going to break just about every promise made, in other words he’s lying through his teeth, then the current Coalition have by far the worse numbers and staying within budget.

    Face it they couldn’t even get bogus accounting to make their figures look good, and the funny/scary thing is that very recently Hockey and Abbott were still sticking by the discredited accounting figures.

  10. That and many others 730reportland.

    You don’t have to go much further than Newman for the best example of what Abbott will do, but Barnett, O’Farrell and Baillieu also serve as examples.

    Hockey has already said that as soon as they get in they will have an audit commission, no doubt using Costello who so royally (deliberately?) fudged the Queensland one, which by the way Newman apologised in parliament for the figures being so wildly inaccurate.

    Abbott has no intention of keeping a fraction of his brain farts and only pumps them out there because he knows the media won’t hold him to account.

    What gets my goat is that the Liberal rusted on not only know he won’t keep most of his nonsense policy promises, or at the least are hoping he won’t, they condone this deception whilst calling out the government and Gillard, often falsely, for lies and broken promises or not meeting policy goals.

    Their hypocrisy knows no bounds when it comes to supporting the most decrepit party ever in the Liberals.

  11. Strange then that Australia has one of the best performing economies in the world..must be something to do with the incompetence of the Labor government. 🙄

  12. 730, I can see it now..promise after promise broken and the blame laid squarely on Labor. Nothing to do with the fact that Abbott’s brain f*rts cost a squillion with very little to show for it, other that maybe a few trees planted (as if LandCare and DuneCare and conservation minded farmers don’t do this already) and some very wealthy women provided with even more money so that they can stay at home to mind bubs.

  13. Nothing more certain Min that if Abbott gets in and the economy goes south as a result it will be blamed on the incompetence of a Labor government.

  14. Min,

    One gauge of a party’s economic competence is how the domestic economy performs during periods of global adversity.

    Under Labor we’ve come through the GFC in the best shape of any advanced economy in the world.

    When the Liberals were last in office during a severe global downturn, the domestic economy suffered a very different fate. It was during the late 70s/early 80s under then treasurer, John Howard. Howard presided over Australia’s worst recession since the Great Depression, and brought us the only-ever instance of the Trifecta of Misery:

    – double-digit unemployment
    – double-digit interest rates
    – and double-digit inflation

    … all at the same time!

    The only-ever instance of Stagflation – the combination of recession and high inflation.

    Plus debt and deficit that climbed year after year.

  15. Mobius, strange times isn’t it. Other economies performing very badly with Australia showing how it’s done and it’s all but ignored. Labor good = ignored. But should Tony and old Joe stuff it up which is highly likely given Robb’s many hair-pulling moments, then it will all be Labor’s fault. Why cannot Labor also be “at fault” when the economy is doing so well..because it’s Labor of course.

  16. Cuppa, and who can forget that when Howard was in power that ever increasing interest rates according to Howard were indicators of our prosperity (that was Howard’s exact argument). I wonder how successful Labor would be if they attempted the same statement.

    Plus to add to your list the worst house affordability in Australia’s history – but again according to Howard this was an indicator of our “prosperity”. Australian society is still suffering from this one. Example, would we even need a paid maternity leave scheme if housing was affordable? Or if we did, could this be better directed to only those who really need the income..the lowest of the income earners.

  17. Gee, another promise from another politician that will vanish like the morning mist like all the other bullshit promises.

  18. And not before time..

    Describing the education policy as a ”national crusade”, Ms Gillard warned of ”tough budget decisions” and referred to previous cuts aimed at high-income earners – such as means-testing the private health insurance rebate, means-testing public dental care, and slashing tax concessions for superannuation contributions – and said to expect more of the same. ”Big controversy, big headlines, big criticism, the right thing to do, the Labor thing to do,” she said. ”And you’ll see more of it.”

    http://www.smh.com.au/opinion/political-news/big-earners-to-be-hit-by-education-crusade-20120903-25akn.html#ixzz25RyIpq3t

  19. Norman, Abbott is on record as saying we need to breed more. Probably got it from the Bible. “Go forth and multiply”.

  20. Johnny, he’s more like a window stain that you simply can’t remove. Like a bug that splatters on your window screen and is spread across the screen by the wipers. No amount of effort cleans up the mess.

  21. Cuppa @ 7:31.

    It’s been over 40 years since our unemployment rate, interest rate, and level of inflation have been below 5 per cent.

    What a horrible result for the opposition. 😉

  22. Min, and committed to the user pay philosophy. Well he was when it applied to the lower income earners.

    Different one for the higher income earners, they deserved their handouts.

    Greater the income, the more the need, according to Liberals.

  23. Indeed Cu..little Freddy needs those archery lessons via a private school, government subsidised education. User pays..Freddy’s parents can pay for these themselves.

  24. Migs and,

    And what happens if Abbott is elected prime minister but a hostile Senate dominated by the Greens will not allow him to wind back the carbon tax?

    . Which is precisely what is going to happen.

  25. Min, the GEF will stay in place. It is needed and it is the right way to go about it.

    A majority still believe in man made climate change.

    There is no way that industry will want it repealed. Most accept that there needs to be action. Most have been changing the way they run their businesses for decades, getting ready.

    There is no way, they want years of instability and uncertainty while Abbott’s attempts his demolition.

    This is the reality of the situation.

  26. Given that Abbott has called for more babies to be produced in Australia and the price of goods and services are going to go up to fund his PPL scheme, it is only a bit of a rhetorical stretch to say:
    “Every time a working household has a baby, the price of bread goes up.”
    It will be Abbott’s new Baby Tax on Bread.

  27. Nice one Mig, though he has other problems like this as well. Don’t forget his Direct Action plan for climate change. It’s effectively a great big new tax on citizens for which the proceeds go to big business.

    In fact Tony Abbott has a lot of credibility issues when it comes to budgets and taxes. He still hasn’t come clean about the $70bil hole in their own costings.

    I think the mainstream media would have a field day with the way they’ve been caught out the Tories over the economy.

  28. I see “Treeman” has his “Walker Corporation” cap on…..Is that the same mob were done $200.000.00 fine for clearing native vegetation for a developement?

  29. The Carbon Tax program outlined by the Gillard Government is so generous that it borders on being too good to be true… or a bribe to get the system through. The Government has gone out of its way to ensure most Australians and businesses will feel very little impact of the carbon tax impost with compensation covering any pain.

  30. Alex, I would be reasonable sure that on Abbott’s Direct Action that he is trying to do a Howard, firstly to create a problem where none exists and then come charging in to save the day. On this one my bet is that the target group is the unemployed who will then be paid minimal to work on Abbott’s Green Army.

  31. CU – I suspect that Newman (if he’s still around in a year or two – he has a habit of cutting and running) will quietly sign up to the NDIS. The encouraging thing here is that Newman recognises good policy – even when he’s playing politics and suggesting new taxes.

  32. ‘There’s no concrete funding, there’s no specific timetable, there’s no detail” … Tony Abbott. Photo: Andrew Meares
    Tony Abbott has slammed Julia Gillard’s Gonski address yesterday as too vague and unworthy of a prime minister.
    The Opposition Leader told reporters in Melbourne today that Ms Gillard was “more interested in striking a pose” than delivering education reform.
    This comes as the government has moved to defend its plan for Australian schools, with Ms Gillard pledging that there will be no tax rises to fund her $6.5 billion education “crusade” and that the surplus was not at risk.
    Mr Abbott said that Ms Gillard’s address yesterday, outlining the government’s response to the Gonski review, was not up to prime ministerial standard – and the former prime minister John Howard would never have gone to the National Press Club with something so vague.
    Advertisement

    Read more: http://www.smh.com.au/opinion/political-news/pms-gonski-speech-vague-and-unworthy-says-abbott-20120904-25bms.html#ixzz25U2pKMsg

  33. Abbott looks a little world weary in that pic, CU. Meares better be careful.

    Reminds me of that Coen film…No country for old men.

  34. Actually, I have an appointment to see a plastic surgeon tomorrow….

    There are three things (other than just bad luck) that cause basal cell carcinoma… sun, smoking and alcohol. I can tick all three, and maybe bad luck as well.

    Of course, it may be something else.

    Thankfully my lovely long ears are not affected. 🙂

  35. What is it with wordpress…handyrab one rabbit the next. I’m confused, and a little pished after a wonderful day with an old mate at the Anglers Rest.

  36. It might have something to do with you being pissed. I can confirm it for you later after a few drinks myself. If it works fine for me after being on the turps then it’s clearly a WordPress thingy.

    But then again, I see Tom has no trouble and I could bet London to a brick that he’s probably pissed as a mute at the moment. :mrgreen:

    AGAIN.

  37. Well, I feel the photo does not make one, want to trust. I must have it wrong, as he says it is the PM that is untrustworthy.

    It does not depict a happy and confident man

  38. When I booked the appointment to see the plastic surgeon (see @6.33) they requested I pay half the fee. Why? ‘We get a lot of cancellations’….encouraging what? Then ten minutes later got a text message to confirm appt….I thought I had just done that by giving a credit card number.

  39. Bad news for us believers – the polls are going back again , its a 10 point margin
    again today. Does anyone else think that Jullia G just does not have it? We need
    a new leader now before it is too late. But who?

  40. Only Newspoll Voyager. Morgan face to face and Essential has Labor improving.

    You would be unwise to go on polls this far out.

    I do note though that the Abbott lovers go very quiet when the polls trend away from him and spruik up when they go his way.

    But Voyager forgets to mention Abbott personally dived again in the polls, even Newpoll. Abbott is a millstone around the neck of the Liberal party.

  41. You seem to have left the Solar System, Voyager. Just like your name sake.

    “Bad news for US believers..” Give US a break.

  42. Möbius, I think that panic will set in at the Liberal camp closer to the election when they realise that their boy will have to answer questions and that running away is not an option.

  43. I note that Abbott was doing his usual projection act today saying Gillard was no prime minister material for being vague at the National Press Club and invoking Howard again, and lying about what Howard did as well.

    This coming from Mr Vague himself who has not given us a single well thought out and fully fleshed policy and indeed thought yet.

Leave a Comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s