FOR PRESS 2.0. NOVEMBER 1977
ELECTORATE. TALK
The election is abotit many things inflation, unemployment,
national development and a secure future for all Australians.
It is also about taxation.
Australian men and women now have a genuine choice genuine optionsbetween
Labor Party policies on taxation and the Government's
policies. This will now be!. a key and central election issue.
Mr. Whitlan has made no bones about his position and policies on
taxation. He will abandon outright our tax reforms and tax
indexation and will even recall Parliament to change the tax
laws. In one stroke, in one desperate ploy, he has challenged the right
of all Australian taxpayers to have the tax yoke removed.
Mr. Whitlam, thunbs his nose at the intelligence and judgement
of Australians. He falls victim to his own rhetoric " We ask
the overwhelming majority of Australians to forego nothing" he
declared. " Nothing" is $ 6 a week for the wage earner on average earnings.
" Nothing" is being pushed back up to 45 cents tax rate for thousands
of Australians.
Our tax reforms have cut $ 3.3 billion from personal income tax over
two years. $ 6.3 billion will be saved over three years. Mr.
Whitlan dismisses this as " nothing". Every Australian taxpayer,
without exception, will benefit from tax indexation and our new
tax reforms which take effect in every pay packet in less than
ten weeks time.
I make the point again. This year alone, a person on average
earnings will be saving $ 6 a week on these two reforms.
Mr. Whitlam clumsily dismisses the 225,000 additional low income
people who will pay no tax at all under our reforms. He will make
them pay tax again.
He dismisses the standard 32 cents rate of taxation universally
applauded that will now apply to nine out of every ten Australians.
Remember he would send thousands of people back to paying 45 cents
in the dollar.
He dismisses the incentive we have given for Australians on average
wages to earn another $ 6,000 without paying an additional cent in
marginal tax. To Mr. Whitlam, a marginal rate of 32 cents is worth
to use his own word " nothing". / It is
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It is clear that he knows " nothing" about the concerns of
Australian taxpayers. Incentive, and the freedom to spend
one's own income are " nothing" to the Labor Party.
He would repeal thegreatest tax reforms in Australia's history.
But perhaps that is not surprising from the man whose Government
increased personal income taxes by 125%. Labor is nothing more,
nothing less than a high tax party it has to be, to pay for its
programmes, for its promises.
Last week, Mr. Whitlam unveiled his Party's policies for the
next three years. He was less than forthcoming about the cost
to the Australian taxpayer. He has announced a big spending
programme and nothing he says can hide that reality.
In a replay of the old, failed, policies, Mr. Whitlam proposes
a crash spending programme of $ 800 million in six months, and
an extra $ 1,700 million to end payroll tax. Mr. Whitlam has
been deliberately vague about the precise details of his proposals.
Nevertheless, the cost is vast thousands of millions of dollars.
He wants to bring in national superannuation which could cost
$ 2,000 million; go back to the old Medibank scheme at a cost of
about $ 700 million; take over local Government debt charges at
a cost of about $ 215 million; promote exports at a cost of some
million; take over state country railways at a nett cost of
at least $ 90 million; and give tax deductions for mortgage
interest at a cost of $ 70 million.
Just these-promi-ses-woulid cost more than $ 3,000 million and there
are many more commitments which Mr. Whitlam has made. How does
Mr. Whitlam plan to pay for all these schemes? He can get his
money in two ways. He says he will increase taxes, and it is
clear hewill also have to resort to the printing presses once
again as he did when he had a chance on an earlier occasion.
Either way, it is a return to economic chaos.
We also know from bitter experience how Labor controlled the
nation's finances-or rather, how it failed to control them.
Mr. Whitlam's actualdeficit in 1974/ 75 was almost five times
what he budgeted for as his spending went up by 46% in that one
year. Mr. Whitlam and his Party z . e still the Party of big
spenders and high taxes. They are still promising to spend
something they have not got.
My Government on the other hand will announce policies that the
nation can afford. They will be creative and imaginative
and designed to benefit all Australians. We will promise what
we have already delivere'd and that is sound and solid
policies properly costed, properly planned.
Australia cannot afford and cannot risk the alternative.