Joint Media Release with the Shadow Treasurer, Chris Bowen.
Labor’s responsible reforms to negative gearing and capital gains tax will improve the Budget by around $600 million in the first year and grow to deliver an $8 billion fiscal dividend by the end of the medium term period.
In contrast, the Turnbull Government’s $50 billion giveaway to big business, beyond Labor's small business tax cut, costs the Budget $200 million in 2017-18, and over the decade will become a drain on the Budget to the value of $13 billion.
Over time, Labor's policies increasingly improve the Budget bottom-line, while the Liberals’ policies damage the Budget bottom-line.
Source: Parliamentary Budget Office
The differing approaches to fiscal repair between the two major parties this election could not be more stark.
The Liberals’ Reagan-esque approach of delivering tax cuts for big business and hoping it will trickle down through the economy will blow an ever increasing hole in the Budget bottom-line.
Labor will undertake responsible reforms in areas such as negative gearing and capital gains tax and will close tax loopholes to deliver ever increasing improvements to the Budget bottom-line.
Based on current Budget forecasts, Labor will bring the Budget back to balance in the same year as the Liberals.
Labor's plan involves responsible medium term structural repair to the Budget while the Liberals’ plan is to rely on measures that will never pass Parliament.
Labor is undertaking responsible fiscal repair while properly funding schools and Medicare, while the Liberals are cutting funding to schools and Medicare to give a $50 billion tax cut to big business.
Labor has been upfront about our Budget decisions, and we will keep to our fiscal rule of having more improvements to the Budget bottom-line than spending over the medium term.
Labor will deliver structural improvements that provide long term outcomes and undertake Budget repair that's fair - the Liberals are doing the exact opposite.