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Tax increases tomorrow



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Deputy Leader of the Opposition

Uh

STATEMENT BY TUU HON. JOHN HOWARD M,P.

TAX INCREASES TOMORROW

035/35

2 ,0 / 6 j % 3

From tomorrow, J u l y 1, th e a v era g e A u s t r a l i a n f a m i l y

paying o f f a home w i l l be a t l e a s t $10 a -week worse o f f .

In a d d i t i o n , t h e r e w i l l b e f u r t h e r r i s e s i n t a x e s and

F ederal Government charges i n " t h e n e x t Budget and"State c h a r g es w i l l a l s o i n c r e a s e a f t e r t h i s week1 s hoar, Council

m e e t i n g . .

The Hawke Labor G o v ernm ents r e c e n t 'Ttiini-budget a ss a u lt" ότι average A u s t r a l i a n s s t a r t s from J u l y 2 when i t t e r m i n a t e s

the p r e v i o u s GovernmentTs $175 m i l l i o n a y e a r housing i n t e r e s t r a t e s u b s id y and i t s $500 m i l l i o n a y e a r

h e a l t h insura nce r e b a t e .

Tiie "average" A u s t r a l i a n f a m i l y e a rn in g $300 a week *Vith * a $25 ,000 mortgage a t 1 31S , w i l l l o s e about $5 a· week " "

oh i t s housing loan r e b a t e and about $4 a week on i t s

m ed ical r e b a t e from tomorrow because o f t h e m i n i - b u d g e t .

Higher phone and p o s t a l c h a r g e s are i n e v i t a b l e i f f order

t o recoup th e $100 m i l l i o n e x t r a i n t e r e s t b i l l

A u s t r a l i a Post and Telecom, have t o pay t o th e Government

a n t o f "the m in i-b u d g e t,

On top o f a l l t h a t , h ig h er p e t r o l p r i c e s (a n o th er broken

e l e c t i o n promise) w i l l c o s t an average f a m i l y about $1 a

week and ta x pa y ers w i l l need an e x t r a $400 a . y e a r i n

c o n c e s s i o n a l d e d u ctio n s b e f o r e th e y can c la i m them

f o r ta x p u r p o s e s , so adding $?ΰ m i l l i o n a y ea r t o

A u s t r a l i a n s ' tax b i l l , w h i l e f a m i l i e s w ith modest

. ../Γ Parliament H ou se. Canberra. A.C.T. 2.0o o

investments will lose their d j . y i d e n d - . r e b a t e s on shares adding a further $1< 3Q million to Australians t a x bill,»

A l l o f t h e s e e x t r a t a x r e v e n u e s H i l l go i n ' b i g g e r

g o v e r n m e n t s p e n d i n g , as t h e m i n i - b u d g e t had h a r d l y

any i m p a c t o n t h e s i z e o f t h e d e f i c i t ,

The r e b a t e scheme now c a n c e l l e d by t h e Hawke

Government a l l o w e d a t a x r e b a t e o f 30 per c e n t

on a l l h o u s i n g l o a n i n t e r e s t h i g h e r titan 10 per

c e n t on up t o $ 6 0 , 0 0 0 o f a l o a n on t h e f a m i l y home.

•This meant betw e en $$ and $8 a w e e k ' b e n e f i t on average

bio r t g a g e s . __

F a r t h e r m i n i - b u d g e t c h a n g e s y e t t o come in"O ctober

i n c l u d e t h e r e p la c e m e n t o f t h e $90 m i l l i o n a y ear

hone d e p o s i t ' a s s i s t a n c e scheme and the" $15 5 m i l l i o n

a y e a r f i r s t home bxtyers r e b a t e ( t o t a l l i n g $X4S

n i l ! i o n a y e a r i n a s s i s t a n c e t o home bu y ers) w i t l i ax

new scheme c o s t i n g o n l y $165 m i l l i o n .

T h i s w i l l mean, t a k i n g a fxfrttVer $8'D m i l l i o n a y e a r

o u t o f hoxie - owning t a x p a y e r s * p o c k e t s .

Some o f t h e s e c ha ng es w i l l n o t d i r e c t l y a f f e c t f S M l i e s

u n t i l t h e y put i n t h e i r t a x r e t u r n n e x t y e a r , when t h e r e

w i l l be v e r y few r e f u n d s compared·'to t h e l a r g e t&y.

r e f u n d s due .in coming months from the p r e v io u s Governmentf s

t a x r e b a t e s t h a t are now c a n c e l l e d ;

30""·· J u n e I 9 K3

Printed by C. J. T hom pson, Commonwealth Government Printer, Canberra