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Costello supports slug on families trying to get ahead.



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Costello supports slug on families trying to get ahead

The Treasurer today revealed how out of touch the Coalition is with middle Australia, suggesting families are not worried that the Government pockets the majority of their extra earnings from overtime or a pay rise.

Confronted with new information in Question Time today about an increase in the number of Australians facing effective tax rates of more than 60 cents of each extra dollar earned, the Treasurer said:

…I don’t think, Mr Speaker, this is actually a serious policy question.

Peter Costello might not think this is a serious issue, but families and Labor certainly do.

It is also clear that the Treasurer is unable to come to grips with the failure of Government’s tax and transfer payment reforms.

In selling the New Tax System, the Treasurer and Prime Minister claimed that disincentives facing families and others who increase their earnings would be addressed.

But new research by NASTSEM1 suggests little improvement was made and, indeed, the situation is now worse for some.

Information contained in NATSEM's report indicates that the number of Australians losing more than 60 cents of each additional dollar earned is now well over 800,000 - approaching double the number in 1997.

The report's author concluded that 75% of those losing more than 60 cents had dependent children, and the burden of high marginal tax rates was saddled on middle-income earners.

The Government’s policies for families are a failure.

Only Labor understands the financial pressures families are under - precisely the reason why Labor has always fought for policies, like tax credits, that provide incentives for families who work harder and earn a bit extra.

Parents put in a bit extra to help their families get ahead - not to line the pockets of John Howard and Peter Costello.

ENDS Thurs 14 Nov 02 ENDS Thurs 14 Nov 02 ENDS Thurs 14 Nov 02 ENDS Thurs 14 Nov 02 Web: Web: Web: Web: www.SwanMP.org www.SwanMP.org www.SwanMP.org www.SwanMP.org

Contact: Wayne Swan on 0418 795 329 Contact: Wayne Swan on 0418 795 329 Contact: Wayne Swan on 0418 795 329 Contact: Wayne Swan on 0418 795 329 Matt Linden on 0407 430 613 Matt Linden on 0407 430 613 Matt Linden on 0407 430 613 Matt Linden on 0407 430 613

1 Work Incentives Under A New Tax System

Wayne Swan MP Manager of Opposition Business Shadow Minister for Family and Community Services