People in our local community often tell me they reckon the rules of the economy are written to benefit someone else at their expense.
And they’re absolutely right. At the same time as company profits are soaring, people’s pay packets are growing slower than ever, penalty rates are being slashed and more than one million Australians can’t get the hours they need at work to support their families.
The rules that advantage the most fortunate at the expense of those who work and struggle need to be re-written, to make them fairer and more inclusive.
That’s why Labor has announced crucial reforms to our tax system, which help level the playing field by closing down unfair and unsustainable loopholes, make sure multinationals pay their fair share of tax, and put more back into the pockets of hard working families in communities like ours.
Labor will make the tax system fairer by:
- Reforming negative gearing and capital gains tax discounts: A Shorten Labor Government will level the playing field for first home owners by limiting future negative gearing concessions to new housing, and reduce the capital gains tax discount from 50 per cent to 25 per cent;
- Changing the taxation arrangements for family trusts: A Shorten Labor Government will introduce a standard minimum 30 per cent tax rate for discretionary trust distributions to mature beneficiaries (people over the age of 18) – a move that will stop wealthy people with a family trust from “income splitting” or using the trust to pay money to family members who would not have to pay any, or very little, tax;
- Ending cash refunds for excess franking credits: Our changes to the current dividend imputation arrangements cracks down on a loophole that gives tax refunds to people who have a lot of wealth, but don’t pay any income tax. Everyone who gets share dividends can still use the system to reduce their tax bill, but they won’t get a cash refund if they’ve paid no income tax. Our plan is not retrospective and will apply from 1 July 2019; and
- Reforming superannuation: We’ll make superannuation fairer by lowering the annual non-concessional contributions cap to $75,000, lowering the High Income Superannuation Contribution threshold to $200,000, and reversing the Government’s superannuation tax loopholes, including allowing for catch-up concessional contributions and tax deductibility for personal superannuation contributions; and
- Making people pay their fair share: We’ll cap deductions for managing tax affairs and crack down on tax dodgers in a range of ways, including by:
- closing debt deduction loopholes that allow multinational firms to shift their profits offshore;public reporting of country-by-country reports;protecting whistle-blowers;
- mandatory shareholder reporting of tax haven exposure;
- public reporting of AUSTRAC data;
- making Government tenderers disclose their country of tax domicile;
- developing guidelines for tax haven investment by superannuation funds;
- creating a publicly accessible registry of the beneficial ownership of Australian listed companies; and,
- requiring the ATO to disclose the number and size of tax settlements.
Our changes aren’t just built on fairness, but they’ll help improve the Budget bottom line as well.
Labor is also ensuring businesses and working people in our community are better off.
Australian Investment Guarantee
Our Australian Investment Guarantee is targeted towards local businesses, providing important tax relief while rewarding those that invest in Australia.
Under our plan, local businesses will be able to immediately deduct 20 per cent of any new eligible asset worth more than $20,000 – a permanent change that will support local businesses to expand and grow.
In Rankin, 12,468 local businesses will be eligible for tax relief under Labor when they invest onshore.
Refund for Working Australians
Our Refund for Working Australians nearly doubles the tax cuts being offered by the Liberals, leaving locals up to $928 a year better off.
Analysis of Tax Office data shows 75,000 people in Rankin and 73,000 people next door in Forde – or more than three-quarters of all local taxpayers – will be better off under Labor’s plan.
Under Labor, working and middle class Australians will pay less tax.
To find out what Labor’s plan means for you and your family, visit www.biggerbettertaxcut.com.au