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Joe Hockey's 'stimulus': savage cuts that will hurt small business

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Campaign Media Release

Campaign Spokesperson Penny Wong


Small business and experts are today lining up to discredit Joe Hockey’s laughable attempts at claiming his plans for savage cuts will be a stimulus for the economy.

Yesterday Mr Hockey said:

“..on 1 July next year we get rid of the carbon tax, so we get rid of the ball and chain, but it effectively turns the current tax rates into a stimulus.” Press Conference, 28 August 2013

Let’s call Mr Hockey’s ‘stimulus’ for what it really is - seven new tax hikes totalling $14.3 billion that will hit small business and families hard.

Mr Hockey confirmed yesterday that the Coalition will slug 3.2 million small businesses with $4.6 billion in new tax hikes, including slashing the instant asset write off.

He confirmed more than 100,000 companies will lose the loss carry-back tax offset, ripping $900 million out of the economy.

Mr Hockey also announced taxes will go up for superannuation holders, retirees, pensioners and shareholders by $1.6 billion per year through the reintroduction of double taxation.

He confirmed there would be a $400 million hit on the car industry by removing the accelerated depreciation for motor vehicles.

And then he said he would stimulate the economy. He wasn’t joking.

Small business and families know the truth - and they aren’t laughing.

They know the Coalition’s cuts will hurt small business and put jobs at risk.

Tony Abbott’s seven new tax hikes are:

1. Increasing taxes on small business by cutting the instant asset write-off ($2.9 billion tax hike) 2. Increasing taxes on small business by scrapping the loss carry-back initiative ($900 million tax hike) 3. Increase taxes on small business by scrapping the immediate deduction

for motor vehicles ($400 million tax hike)

4. Increasing taxes on Australia workers because their employers won’t contribute as much into concessionally taxed superannuation ($1.6 billion tax hike)

5. Increasing taxes on 3.6 million workers by cutting the Low Income Super Contribution ($3.7 billion tax hike)

6. Increasing taxes by on Australia’s largest employers and double taxing Australian shareholders through the company tax levy ($4.4 billion tax hike)

7. Increasing interest withholding taxes ($400 million)

We already know families, retirees and pensioners are hit by Mr Abbott’s cuts. Now it’s small businesses.

And these are just the cuts we know about - where else will the Coalition’s $70 billion in hidden cuts will come from?

The choice at the election is clear - between a Labor Government that protects jobs and promotes economic growth , and a Coalition that only knows how to cut.

29 AUGUST 2013

Communications Unit: T 03 8625 5111

Authorised by G. Wright, Australian Labor Party, 5/9 Sydney Avenue, Barton, ACT, 2600