The Coalition has been busy pointing out, the government’s ”tax cuts” will include the first increase in marginal tax rates since the 1980s. Although somewhere in the background a voice could be heard saying “This is a hysterically inaccurate statement made by the opposition” So we knew there had to be some validity in it.
The lowest marginal rate will jump from15 per cent to 19 per cent in 2012-13 while the 30 per cent rate will rise to 32.5 per cent in 2012-13 and 33 per cent from 2015-16.
The hike is the tax-free threshold going from $6000 a year to $18,200 from 2012 and $19,400 from 2015, However if your income goes to $80,001 the ”tax cut” will be $3 a year from 2012 and an extra $13 a year from 2013.
It seems the Government has now decided $80,001 you are in the filthy rich category and so don’t deserve any assistance, (they do have to consider the other 500 top polluters, they are now giving compensation to, don’t they, I would hate to see them disadvantaged when there are so many without the money to fight this tax, the Government can extract their tax from instead.) Seeing as initially they talked up this figure as being $150,000 shows how out of touch with the taxpayers this Government is.
So let’s work this through, previous to the Carbon Tax you could earn $6000 tax free and then up to $37,000 it was 15c of every dollar over the $6000. Wow the tax free threshold has sky rocketed for low income earners, true, well it is not quite as it seems.
Yassar El Ansary, is a tax counsel with the Institute of Chartered Accountants of Australia, and he says the changes delivered only a marginal incentive to encourage people to work as the effective tax-free threshold is already $16,000 for lower income earners because of the $1500 low-income tax offset.
This offset will be cut to $445, increasing the effective threshold for lower earners to $20,979 in 2015 – not the trebling the government claims.
Yasser El-Ansary, also said the government’s move to deliver tax cuts to workers earning less than $80,000 a year showed Labor thought those earnings above that could afford the carbon impost.
“The government is deliberately trying to deliver targeted tax reform to low- and middle-income earners to the exclusion of others,” Mr El-Ansary said.
“The government’s defined that those on $80,000 a year and above are capable and able to absorb the increases that there will be in consumer prices. ”That is differing markedly from when the government has gone down this path before when it was targeting $150,000.”
According to the PM: The average household’s costs will increase by about $10 a week. All but the top 10 per cent of households will receive tax cuts and benefit increases to compensate them for this higher cost and two-thirds of households will be fully compensated.
However, Climate Change Minister Greg Combet said no Australians would pay more tax under the reforms.
This may be hard to imagine, the Government rolling out the Carbon Tax details and getting the figures wrong? In fact the benefit lower income earners are told they will get will be a third worse than the Governments claims.
Something that is also kept quiet is the carbon papers show the tax changes will cost the government $3.34bn in the first year, before falling to $2.3bn and $2.38bn over the following two years. Just further costs to our economy and adding to our Debt. But this Government have no issue in spending our money, it will just find new ways to tax us. And what will be the nett result of all of this?
Carbon Tax and ETS around the world are being scrapped, in the EU Carbon Fraud is rife, and the Top 6 countries are responsible for approx 70% of CO2 emissions, and the top 16 countries responsible for 87%. We are the 17th country and responsible for a massive 1.3% I look at all of this and think even as a believer I would have to have doubts as to whether this is a sensible way for Australia to go, as we will not make one iota of difference to these figures globally, and Australia is more than large enough to cope with this level of CO2 Emissions we supposedly contribute.
We must keep fighting and not allow this dangerous regime to get away with the destruction of our Nation, The bigger the pressure the more chance of this being defeated especially when Gillard’s Government has plummeted to 27% support. There will always be a patriotic Labor member who could stand against this, and incidentally may just end up leading the Party next.