Liberals and Labor to battle it out on tax

TAX policy is shaping up as a defining issue between the two major parties in Corangamite, with the Liberals’ Sarah Henderson praising the passage of her government’s personal income tax plan through Parliament and Labor’s Libby Coker rubbishing it.

The $144 billion tax plan will be rolled out in three stages over seven years – stage one is for low and middle-income earners, stage two is for those earning over $90,000, while stage three is for those earning more than $120,000.

Tax brackets will also be lifted.

“Taxes in Australia will now be lower, fairer and simpler; 64,558 people and their families in my electorate of Corangamite will benefit from tax relief of up to $530 in 2018-19,” Ms Henderson said.

“This is a win for all working Australians who want to get ahead. You will have the certainty that when you earn more, get a pay rise or work more hours, you won’t face ever-increasing tax rates.

Under our plan, 94 per cent of Australian workers will not face higher marginal tax rate of more than 32.5 cents in the dollar, with our first priority low and middle income earners because we understand the benefits of a stronger economy have not yet flowed to all.”

Ms Coker said the Prime Minister and the Liberals “just voted to give themselves a $7,000 tax cut”.

“And what are they cutting to pay for this? Our local schools and hospitals. Next on their agenda is the Liberal promise of a $17 billion corporate tax cut to the big banks.”

Labor has promised to repeal stages two and three of the package – which Ms Coker described as “Turnbull’s tax cut for the top end of town” – and instead “deliver bigger tax cuts to the people who need it most: working and middle class Australians”.

Ms Henderson said Labor’s policy would cost taxpayers $70 billion in extra income tax over the next decade.