Axing just 4 unfair tax breaks would plug Budget revenue hole: Greens
Greens Treasury spokesperson Adam Bandt MP will today unveil costings on removing just four sets of unfair tax breaks that would cover forecast revenue shortfalls set to be revealed in next week's Mid Year Economic and Fiscal Outlook.
The Budget deficit is expected to be between $33-39 billion worse than expected when MYEFO is released on Tuesday, according to several recent independent forecasts.
Costed by the Parliamentary Budget Office, $37.6 billion in additional revenue could come from winding back four sets of unfair tax breaks alone. These are: limiting superannuation tax breaks for high income earners; an end to the capital gains tax discount; an end to negative gearing for new investors; and an end to most fossil fuel subsidies.
"The Treasurer will reveal a great big revenue hole in the Budget on Tuesday, but his only solution will be more cuts to services and an increase in the GST," Mr Bandt said.
"If the government is prepared to stand up to the very wealthy and wind back unfair tax breaks, there is $38b in low-hanging fruit ready to be picked."
"Labor Premiers are selling out the poor by discussing an increased GST at COAG while turning a blind eye to these unfair tax breaks."
"The Greens want to see an end to unfair tax breaks instead of an increased GST. It's a fairer and a better way to solve the Budget's growing revenue crisis."
"If implemented, the measures outlined in this costing would save the taxpayer $37.6 billion over the next four years and continue to provide $13 billion a year in revenue thereafter."
The Greens are yet to release their final policy on capital gains tax discounts. This costing assumes the removal of the full CGT concession.
Superannuation contributions would be taxed on a more progressive scale.
Accelerated depreciation for resource companies would be removed as would the diesel fuel tax credit, but credits would continue to be available to farmers.
Download full PBO costing here