Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Democrats propose 1.25% jobs levy



Download PDFDownload PDF

«r

" Senator John Coulter Australian Democrats Leader

9 July 1992

NEWS R E L E A S E

Democrats propose 1.25% jobs levy

A jobs levy, which would raise $2.5 billion in the first year to create at least 150,000 full-time jobs, is proposed in the Australian Democrats industry and economic statement G etting to Work.

The 1.25% income tax surcharge would create jobs in refurbishing public infrastructure, rehabilitating the environment, and community service projects. Twenty-five per cent of the new jobs are earmarked for youth.

In their 100 page $8.6 billion economic and industry statement released in Canberra today the Democrats propose the levy for five years after which it would be reviewed according to need.

The jobs levy would operate exactly like the 1.25% Medicare levy. It would be paid on taxable income and low income earners not required to pay the Medicare levy would also be exempt from the jobs levy.

The unashamedly job creating scheme would operate as a Federally administered grants program to which local, state and federal government departments, and community organisations could apply for funding.

Key criteria for funding would be the number of jobs a project could reasonably generate and the project's worth.

Infrastructure development or refurbishment projects such as road and drainage works, bicycle paths and bus shelter construction, and stormwater drainage works would be considered.

Environmental projects including street and landscaping, river revegetation, feral animal eradication or dune protection projects would be suitable.

Community service projects could include home nursing, aged care or any type of labour intensive project that met a community need.

The figure of 150,000 jobs for $2.5 billion of spending is an extremely conservative estimate and thousands more could reasonably be expected. A study by economics professor Roy Green of the University of Newcastle earlier this year found that spending $1 billion would directly create 207,000 jobs and 32,000 indirect jobs.

See table attatched for levy rates per income groups.

Contact Jenni Mack: 06 2

A U S T R A L I A N

DEMOCRATS

06 295 7069 or 018 630 136/7 ------ r 1 |1 M COMMONWEALTH P A R L IA M E N T A R Y LIBRARY

ivfiC A H

JOBS LEVY SCALES

Taxable Income

Taxpayer with no dependents

Taxpayers with 2 dependents

week year week year

$10,000 nil nil nil nil

$20,000 $5 $250 nil nil

$30,000 $7 $375 $7 $375

$40,000 $10 $500 $10 $500

$50,000 $12.50 $625 $12.50 $625

$60,000 $15 $750 $15 $750

$70,000 $17.50 $875 $17.50 $875

$80,000 $20 $1,000 $20 $1,000