The need for genuine tax reform

australia is too reliant on personal income tax. We need meaningful tax reform to secure the country’s long-term economic prosperity. By angus taylor.

First published in The Daily Telegraph

“Tax”. It’s not a word that people really like to hear.  

Because when we hear that word, we link it with losing our hard earned money.  

But it’s also an unavoidable part of the world we live in.  

Unfortunately, the Australian government has become too reliant on taxes – in all shapes and sizes, but especially personal income tax.  

A good government must live within its means. Not only does that put downward pressure on inflation, it reduces the tax burden on hardworking Australian families.  

The Albanese Labor Government, however, has committed to spending an extra $209 billion since the election.  

To pay for it, they’re coming after your money.  

Income tax, indexed excise payments and the end of LMITO mean that along with higher inflation, Australians are being burnt at both ends.  

There’s something very wrong with the system when a government is this reliant on the tax on your hard earned money.  

And that's why genuine tax reform is so dearly needed in this country.   

I am fully aware that many Australians are cynical of politicians, and I have some sympathy with that view. Too often, politicians and political parties will put their interests above the interests of the nation.  

Sadly, that’s exactly what we’re seeing with the Albanese Labor Government and their broken promise on stage three.  

There’s no doubt this is just a political game for the Prime Minister. This broken promise is about his political future, not Australia’s long term economic prosperity. They don’t care about genuine tax reform.  

The tax plan that was legislated under the previous Coalition government was a comprehensive tax reform package. The three stages were genuine reform focused on simpler, lower and fairer taxes, benefiting all Australians.  

As a result of the Coalition's personal income tax plan, someone on $70,000 has kept more than $9,000 of their income.  

It established hard work and aspiration as the centrepiece of our economy.  

It told Australians they could keep more of their hard earned money, instead of losing it to the government.  

It encouraged people to invest, take risks and to innovate, which are fundamental to a strong, low inflation economy.  

The Labor Party doesn’t seem to understand this – they believe the economy is a zero sum game, in which you can just move money around.  

As the party that’s committed to lower, simpler and fairer taxes, the Coalition will never stand in the way of people getting more of their money back.  

As the Opposition, we believe allowing passage of the government’s changes is the best option we have left, as a consequence of Anthony Albanese’s broken promised and failed economic management. 

Australians’ living standards have absolutely collapsed under Labor. And unfortunately, this government has not put up any meaningful economic policies to reverse the sharp price increases we have seen recently.  

As we approach the next election, the Coalition will deliver tax reforms in keeping with our principles of: delivering lower, simpler and fairer taxes, fighting bracket creep and enshrining aspiration, rewarding hard work, and uniting the country rather than pitting people against each other.  

These principles are crucial to make sure that our economy grows and that we prosper in years to come.  

Because when our economy is strong, every single person benefits.  

It’s not about taking money from Peter to pay Paul, which is this government’s mentality. It’s about encouraging aspiration so that both Peter and Paul have more money in their pocket.  

Angus Taylor is Federal Shadow Treasurer.