Hockey promising the world but how will he pay for it? 390



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Treasurer Joe Hockey says that the Abbott government will take personal income tax cuts to the next election to combat “bracket creep”, ensuring they are a major poll issue.

Bracket creep is seen as people being pushed into higher tax brackets because of ordinary wage increases and it’s thought to be one of the biggest issues facing the tax system.

Mr Hockey yesterday set out a comprehensive economic case for personal income tax cuts in a speech to the Tax Institute and Chartered Accountants Australia and New Zealand in Sydney.

Mr Hockey’s belief is that the government has no choice but to cut taxes for middle and low income households because the tax system is increasingly penalising them.

The Treasurer has taken a firm line on tax cuts days after multiple cabinet leaks showed the government wants to return the national conversation to the Coalition’s perceived strengths of the economy, jobs and growth.

Mr Hockey warns that without personal income tax cuts, about 300,000 Australians will be moving into the second highest tax bracket in the next two years because of inflation and rising wages.

He says the existing tax system will create disincentives for people wanting to work extra hours, and in some case, from working at all, and that it would not be right to allow so-called “bracket creep” to cover rising government spending.

“Many Australians are not fully aware that they will be paying higher taxes as a result of the stealthy rise of bracket creep,” he’s reported as saying in The Sydney Morning Herald.

Mr Hockey ruled out other strategies for making bringing the budget into surplus, such as reducing super tax concessions for the wealthy. “Now is not the time to hit [retirees] with a new tax,” the Treasurer told Sky News.

However, critics say beyond that the details of the treasurer’s plan are sketchy at best.

Certified Practicing Accountants (CPA) Australia chief executive Alex Malley told The New Daily the vague promise to cut taxes was nothing more than a pre-election “fiscal giveaway”.

“To actually start forcing a conversation around just personal income tax says to me that we’re in a downhill slide to an election and that’s not good for Australia, we need to make some tough decisions,” he said.

“To defer and distract again in relation to tax and tell us what we already knew at a five-star hotel in Sydney is not my idea of leadership. If it wasn’t so tragic it would be funny.”

Do you agree that bracket creep is the biggest issue with the Australian tax system? Is this the issue the government should be focusing on? 

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  1. No!

    1 REPLY
    • BILL SHORT ONE …HIS MOST AVID SUPPORTERS MUST BE ….!! COCKEY & ABBOTT…the way those two are “performing ” the SHORT ONE …must be laughing his Knickers off ……Abbotts lost the plot …with regard to the GP…..and Joe ..just is’nt in the game ….the SHORT ONE will win by default ..all he has to do …is sit back and watch these two shoot themselves in the foot repeatedly …..And then we get …the SHORT END of the stick ….where’s Hanson ?? she could do no worse ……forget the boats …stop the planes bringing in Illegals….250,000 by plane !!! and they are still here ..we hear Nothing of these people …!!

  2. Ah what happened to the “budget emergency” “debt and deficit” how does decreasing income fix these “disasters”. Where does the money come from now. Is there a election due.

    4 REPLY
    • WE have so much money apparently we can afford to continue Liberal’s greatest expense. WAR. The cost will be a secret of course, same as the cost of “stopping the boats”

    • At least he is trying to get a conversation going. Not like the lefty lot not wanting to talk at all about the thieving, lying, wife cheater Tony Burke. Ok that they rant about BB ( and so they should) but please be a bit fair about it all. That’s one of the big issues, the lefty lot just cannot see where their own votes go.

  3. Maybe Joe should be looking at taxing the rich properly. Look at all the thousands of retired or still working in government positions, ex politicians and top level public servants drawing massive wages and lurks.

    1 REPLY
    • Yes – and the heads of Royal Commissions. Not that there’s many of them. Tony Abbott usually picks the same one every time. The one who was on the board of selecting him (shortly after Tones joined the Liberal Party) for his Rhodes Scholarship so long ago. Is Tones still paying off that favour at $4,000 dollars per day of OUR money?

  4. just like the little workers – including health worker – foot the bill for unionist’s prostitutes, overseas holidays and divorce settlements.

    12 REPLY
    • Oh gee and Abbott star, kathy Jackson has blackened and tarnished to , making him look like a jackass after all the praise he gave her, anyone who has ever been in a union knew she was a crook

    • Never mind Bronwyn will be out the back trying to work out how to rort more of tax payers money

    • Libbi Elliot you may notice I included her myself – rather sweeping statement “anyone who has been in a union” – not only was I in a union I was a union rep – I am a firm believer in workers’ rights -( actually the rights and responsibilities of all) and that is why I get so P155ed off when those who are supposed to be giving collective strength to people who have very little to no power as individuals are a) not doing the job that they are paid to do and b) using their hard earned money paid in union fees to indulge their whims – be it prostitutes, overseas holidays or what else their hearts or bodies desire.

    • David James 2 MILLION spent by Burke – just as well he only took his girlfriend with and not his wife as well.

    • Bluster all you like Trish Harper , this Government is dead buried and cremated at the next election, we have all had enough.. by the way read Newspoll.. Shorten has gone up 5 points as preferred Prime Minister and Newspoll is Murdoch, your goose is cooked

    • okay sweetness – if you have a spare 2 mil please share – I exist on $237.50 a week and i still make the comment just as well he only took his girlfriend and not his wife as well

    • Leanna Stephenson I really don’t get this “we have all” it’s like “everyone knows” everyone wants” – why is “my goose cooked” – I don’t have a “goose” just because I point out the failings of one does not automatically mean I support the other – it appears to be the thinking of some people – please note I have not said “all” that there is nothing wrong with doing the wrong thing as long as someone is is doing “more wrong”. – next time you get pulled over for speeding try ” officer – the person who passed me was doing 40 over therefore I’m okay as I was only doing 30 over” n good luck with that one 🙁

    • Trish Harper I agree with Leanna and if you voted for this Government , more fool you, you backed a loser

    • Trish Harper.. They used Union money not taxpayers money. Not sure what your point is, we are discussing bracket creep and how the government is going to pay for it.

    • they didn’t use “union money” – they used money that belonged to union members – maybe you wish to follow the FULL conversation – I was replying to the claim that “anyone who has ever been in a union knew she was a crook” i pointed out that not only had I been in a union but was a duly elected union rep and I didn’t know she was a crook yet the claim is anyone who has ever been in a union knew she was a crook – anyway as I have also said on previous posts – it appears to me that a lot of people want to have all of their “rights'” but no responsibilities. – it’s like people wanting to do away with negative gearing – if my landlord gets say $2000 a year refund from the government at the moment and this ceases I would think that s/he is either going to increase my rent by $40 per week which will put rents up across the country or sell off his/her investment property which would – once again I assume – bring down the price of houses – great for young people who may then be able to afford to buy their home but where will it leave people like me who at 63 and existing on circa $270 a week? Probably the government will have to spend more money on public housing – possibly more money than they are saving by cutting out negative gearing – I don’t have the answers but at least I am willing to think through the possible consequences where as it appears to me that a lot of people just say – get it from anywhere – everywhere else – just don’t expect ME to contribute because I’m already doing it too tough – anyway I’ve had enough mental exercise for the day – I’ll now go and do something physical and enjoy this wonderful country that I am fortunate enough to live in. Oh no it looks like it might rain – my life is ruined – the weather is not perfect – and perfect is all that is acceptable 🙁

  5. Hockey and Abbott have clearly demonstrated over the last two years that they have no idea about macro-economic management . . . and this ‘bracket-creep’ solution is a case in point. This is like arranging deck chairs on the Titanic?

    11 REPLY
    • WHAT AND YOU RECON SHORT ON BRAINS CAN DO BETTER. GET REAL. After labors biggest stuff ups in history. YOU HAVE TO BE JOKEING

      1 REPLY
      • If labour had a big stuff up like you say.
        labour was in two terms and went through the world financial Crisis,
        They still managed to get a triple A credit rating a thing twelve years of Howard could not do.
        This mob have been in two years and have already doubled the Debt and by the looks of it getting worse by the day.
        They need all the money they can get.
        Now this mob want to give out tax relief ?????????????
        Sorry you are on the wrong track with this lot they just have no idea of where they are going no plan for the future.
        Now they have been in Two years there is no one else the blame the wheels are falling off.
        if you have any sense have a good look at this mob they are just a rabble .

    • What a JOKE. Starts at 60 I noticed you didn’t cover our Prime minister honouring indigenous people? You missed a prime opportunity to honour our prime minster, so much for “sitting on the fence!”

    • Lester, I hate to say it but LABOR are just as USELESS. Both sides of the political landscape need a major reality check on just how much money is available for what is needed by everyone. Can’t cut taxes without cutting spending or increasing the GST etc, its simply not economically possible. All politicians in this nation are just pigs in the trough, not one of them has any vision or leadership for this nation, which is why for the past 10 odd years we’re going backwards at a rate of knots.

    • Heather Mcanalen Hi, can you please show me where you got your information about Labor stuff ups? I’ve been doing a lot of research into this matter and have found their financial management not only kept us out of the GFC, although Abbott is dragging us down there now, and that their management actually brought a lot of benefits to this country. the list is much longer than the list of Abbott lies and broken promises! Their internal problems never interfered in any way with their very sound running of the country. I found the information very easily but if you can show me otherwise before the election I would appreciate it. Apparently everything Abbott said about Labor was lies and deceit. What has changed since then? Unfortunately the people who believe this lying, moronic bully still liked him enough to vote for him – very sad – look what that has done to our country!

    • All the years labor have been in government under such people as (any boss who sacks anyone for not turning up for work today is a bum) Hawk, (banana republic) Keating and the now infamous Gillard and Rudd – how did all that work out. Even during the GFC Rudd squandered millions in the mistaken belief it would save the country – we survived that because of the hughe surplus left by Howard no other reason.

    • John Plummer Exactly what is there is honour in our lying two faced Tony “no cuts” Abbott prime minister – or any of his suck-arse cabinet? HIs truthfulness? Pass. Secretiveness – YES. He’s hiding so much from us I dread to think exactly how bad the results of the suck-arseing China agreement will be for jobs in Australia.

  6. He doesn’t even look convinced. I’m more concerned with the concept that I could end up homeless in my 60,s.

    5 REPLY
    • Sorry to hear that Trish be strong! Maybe our government will start to care one day about its people and bring in affordable homes. I hope your situation doesn’t last to long and you find somewhere to live for the rest of your life free from stress.

      1 REPLY
      • If you look at her facebook, Trish is not 60 (she is young), and self employed

    • I’m sorry too Trish. I have a home and can scrape the rates together this time so you have made me be more thankful for what I have got..

    • That is not completely true Wayne many things are circumstances of life and out of our control.

  7. oh yes cut those taxes to the rich Joe , we would not want them to suffer , after all you have the poor and the pensioners to give a kicking too

    13 REPLY
    • Well said Libby, don’t trust Hockey at all, he is far to scared to touch big business and all the highly paid CEOs who all know how to rort the system, he will go the pensioners and the low paid workers as they can’t fight him

    • How much is this damn war going to cost us that Abbott wants to drag us too? and who is going to pay for that? all those poor bastards they put on a welfare card I suppose

    • David it was Howard who put us into the war , he was a yes man , history tells us Menzies wanted to give the japs Western Australia none of them have got any balls , I’m just hopping like hell and I’m pretty confident Bill Shorton is in it for the right reasons and that is to look after Australia first and foremost

    • I can`t believe you are all so blind to the unions running the country, and all the debt they and labor have cost us. The rich pay a lot more in tax, medicare/private health than you realise. They work just as hard for their dollar. Have you asked your union rep what he can do for you if you need your boss to change your hours.? They will not help because there is nothing in it for them. I have been there and have many more example of them looking after themselves first.

    • you are the one who needs to wake up Gwen Brien, go to any news outlet on social media and read the comments about this, the comments here are mild compared to what we have said Australians have had enough of this destructive Government. We are all retired , we don’t have a union rep

    • Gwen, do you have any facts to support your contention that the rich pay a lot more in tax etc than we realise? Because I reckon it’s bollox. But if you can prove it with reliable info, then fine, go right ahead.

    • They never have proof Diana, they just rattle on with rubbish and hope we are dumb enough to believe it

    • Gwen you are blind to the fact there not doing there job have u seen just how much the Chinese own and there buying all the farms up because of the free trade agreement they will grow all there own beef lamb dairy fruit wine and we will get nothing out of it because they will have all there own people working because they can my personal view is this labour government with Bill Shorton at the top is our last chance for our grand kids if nothing else he knows how to Negotiat a deal because all Abbott can do is repeat what he has done which is put us in a real bad position

    • David James Everything that is wrong with the whole system stems from the idiocy coming through social media, morons empowering themselves from the safety of their computer room and saving the world with 15 word ignorant memes. You’re welcome to it Mate.

  8. The biggest problem for the Australian economy is the corrupt two political party preferential voting system, are you sick and tired and broke, giving the ALP and LNP TURNS AT THE TAX PAYERS FEEDING TROUGH.

    1 REPLY
    • Yep. However, if we feel so strong about it we should get in at the grass roots and do something about it.

      We are a world of armchair critics. Several years ago I was on Ministerial advisory committees with DPI Fisheries NSW and the facts were eventhough there were 1 million licensed Rec Fishers there was a pool of 70 people who made themselves available to be on committees. Some of them were aged pensioners who don’t require a license.

      So come on, go and join the local branch of the party you vote for and cast your vote at the next preselection. B|

  9. I don’t understand how this is a big issue. It’s a normal adjustment that happens every few years. But they might have let it go for a bit too long.

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