Labor Finally Reveals What Its Election Promises Cost
Changes to negative gearing and franking credits will help save Australia $154 billion, Labor claimed, as the party finally answered a big question about how much its election promises would cost.
On Friday, with the election just eight days off, Labor's election costings have finally been revealed.
Shadow treasurer Chris Bowen outlined a plan where he claimed five areas of tax reform -- changes to dividend imputation and franking credits, negative gearing and capital gains tax, trusts, multinationals, and accountant deductions and superannuation concessions -- will raise $154 billion over 10 years.
There's also a stack of new spending and a promise of a faster return to surplus.
Here are a few things you need to know:
Balancing The Budget Books
Labor has projected a 2019-20 budget surplus and a surplus of one percent of GDP by 2022-23 -- nearly $22 billion, compared to the Liberal promise of just over $9 billion.
How Much Will The Tax Changes Cost?
Labor claim their plan will raise more than $150 billion through these changes over the next decade.
The new cash will go toward building that budget surplus -- the first one under Labor since 1989 -- as well as funding election promises like hospitals, schools, cancer therapy, childcare and pensioner dental care.
The figures show Australia's overall tax under Labor would be lower than the United Kingdom, New Zealand, Germany and Canada.
So What's Actually Included?
- Changes to dividend imputation and franking credits, arguably Labor's most controversial and discussed policy, is projected to save $58 billion over the next decade
- Another $32.5 billion will be raised from negative gearing changes
- $30 billion from changing superannuation concessions
- $27 billion from altering how family trusts are treated for tax purposes
- Multinational tax avoidance crackdowns are projected to raise $7 billion
- $16 billion for schools
- $16 billion for cheaper childcare
- $15 billion to encourage businesses to take on older and younger workers
- $10 billion for TAFEs and universities
- $10 billion for higher childcare workers' wages
- $9 billion in free dental work for pensioners
- $9 billion for new affordable rental homes
- $8.6 billion for expanding pre-school education
- $4.4 billion for a Medicare cancer plan
- $1.2 billion in a boost to foreign aid
- $4.3 billion on infrastructure
- $200 million for batteries and clean energy in homes
Adding It All Up:
- More than $160.4 billion in new revenue through cost savings
- More than $157.7 billion in new spendings
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