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Mr Keating's tax package



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Leader of the Opposition . ..

M R K EA T IN G' S T A X PACKAGE

Mr K eating's taxation package will have a d ep re s s i n g e ff e c t on m a n y future i nvestment decisions.

The c o mb in at io n o f a new capital gains tax and the with dr aw al of i nvestment c o n c e s s i o n s in rural A u s t r a l i a will further depres s the rural e c o n o m y at a time when it is o p e r at in g under e no rm o us d if fi c ul ti es . - .

The c apital g ains tax together with the a bolition o f negative g ea ri ng will lead to a decline of investment in t h a rental ~ a c c om m od at io n m ar k e t in the cities. :

The prime victims of the Government's attack' on the rental ' a c co mm odation ma rk et will be low income renters. In o ther w o r d s , Mr K eating's m ea s u r e s on capital_gains and negative gear in g will , h arm those least able to help themselves. '

The O pp os it io n is'vehement ly opposed to Mr H a w k e -s new capital , gains tax and will vote against it. ‘ . - ·

The H a w k e . G o v e r n m e n t 1 s taxation package hit's hard at the private s e c t o r . But the - benefits currently enjo ye d by the 25% of the wor kf or ce who are e mp loyed in the public sector remain virtually, untouched. . . _ ■ ,

The G ov er nm en t has gone overboard in its attack on the , e n t er t ai nm en t industry.

Today on the * Sun da y * pro gr am Mr Keating admitted that there would be job losses in the restaurant industry and that no attempt had been made to estimate how substantial these losses w ou ld b e . ' .,

At a time o f . 8% unemployment and Over 20% youth u n e m pl oy me nt this is g r o s s l y irresponsible. , ,

The service industries provided one of the best o p po rt un it ie s for e m p l oy m en t g r o w t h . Yet the G overnment has decided to hit hardest in this a r e a . - .

The O p po s i t i o n will announce its alternative tax po li cy well before the next election.

As well the O p po si ti on will indicate quite clearly what.it proposes to do about e x p e n d i t u r e .

Parliament House, Canberra, A.C.T. 2600 Phone 72 6994

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One of. the fundamental flaws about the development of the Hawke Government's tax package is -that little regard has been paid to expenditure. .

The need for expenditure restraint was virtually ignored in the White Paper and during-the Tax Summit.

No doubt the Government is embarrassed about expenditure.

The Hawke Government is spending at over twice the real rate of increase of the Fraser years. - . -

Until expenditure is adequately tackled there can be no real . reduction in the overall level of taxation. ; ; “ 5

22 September 1985 ; . . . . . . -

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