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Australian Democrats to blame for government's new capital gains tax



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SENATOR FRED CHANEY LEADER OF THE OPPOSITION IN THE SENATE SHADOW MINISTER FOR INDUSTRY, TECHNOLOGY AND COMMERCE

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"Small business will have the Australian Democrats to blame if the Government proceeds with its new capital gains tax," the Leader of the Opposition in the Senate, Senator Fred Chaney, said today.

"All the signs are that the Democrats are on the verge of a deal with the Government which will impose new taxes on enterprise." he said.

"Despite all the posturing, the odds are now heavily in favour of another Democrat cave-in in the Senate."

Senator Chaney was speaking to the Australian Life Agency Management Association in Sydney.

"As usual, the Democrats will claim to have saved Australia from an even more objectionable tax if the Government decides to make some changes to the capital gains tax proposed in the White Paper," he said.

"The fact is that if the Democrats are really concerned about the impact of a punitive new capital gains tax on small business and rural Australia they have the power to stop it happening.

"They can join with the Liberal and National Parties and vote against the capital gains legislation when it comes before the Senate.

"That would ensure that Australians engaged in small business are spared an extra burden.

"It would also enhance rather than discourage the prospect of the increased private sector growth which is central to the whole Budget strategy.

"But just as happened with the pensions assets test, the Democrats appear certain to go to water when it comes to the crunch.

"This is almost a carbon copy of their approach to the assets test.

"On that occasion all the grandstanding came to nothing when they failed to support an Opposition amendment that would have thrown out the assets test.

"Keeping the Democrats honest is not getting any easier."

SY0NEY 2 September 1985

Contact: Keith Kessell (02) 239 3194