Labor happy to target households earning $87,000 a year, Morrison claims
TREASURER Scott Morrison has drawn on a shocking figure to show how the country’s tax burden is shouldered by a shrinking group of Australians labelled “fat cats” by Labor.
Business
Don't miss out on the headlines from Business. Followed categories will be added to My News.
ABOUT 40 per cent of all Australian families receive more in welfare and government handouts than they pay in tax.
Ten days out from the federal Budget, Treasurer Scott Morrison has drawn on this extraordinary figure to show how the country’s tax burden is shouldered by a shrinking group of Australians who earn $87,000 a year or more, yet are labelled “fat-cats” by Labor.
In a speech painting a clear picture of the difference between the respective tax policies of the government and Labor, Mr Morrison warned that Opposition Leader Bill Shorten would tax successful Australians to “breaking point” in an act of “economic self-harm”.
“The income tax burden is already falling on a smaller group of Australians who also play a critical role in creating and building the stronger economy that all Australians rely on,” the Treasurer said.
“This burden is also carried by the few, not the many, despite the claims of the high-tax club.
“It is also important to note that in 2015-16, 3.6 million Australian households received more in government payments than they paid in income taxes. Four out of every 10 households not paying any net tax after benefits.”
Data from the Australian Taxation Office shows the bottom 50 per cent of Australians pay only 12 per cent of all personal income tax received by the government.
The two million Australians who earn between $87,000 and $180,000 shoulder the nation’s biggest tax burden — paying 35 per cent of all personal income tax collected by the ATO.
“These are the people that Labor believe need to pay more tax and they are happy to hit,” Mr Morrison said.
“These are people earning more than $87,000 per year. These are Labor’s fat cats.”
In a speech to an Australian Business Economists lunch yesterday, Mr Morrison said that Australia should “resist the temptation to play class warfare” like the US and the UK.
“Being successful in Australia is not something we should sneer at, nor something we should seek to punish, discourage or demonise,” Mr Morrison said.
“Do we really think the country and our economy is going to grow by adopting the politics of envy rather than the economics of opportunity?
“Success should be nurtured and celebrated, instead of having a target on its back from Labor.”
The Treasurer said it was a furphy that wealthier Aussies were not paying tax, arguing they do not “begrudge” this.
SHARRI MARKSON: STEERING A COURSE FOR ELECTION
MORRISON SCRAPS MEDICARE LEVY HIKE
MORE BUSINESS NEWS AND HEADLINES
The 416,000 Australians in the top tax bracket paid $56 billion in tax in 2015-16.
“That is 4.1 per cent of taxpayers paying 30 per cent of the personal income tax raised,” he said.
“But we cannot push this to breaking point, where you only end up committing economic self-harm.
“I want a tax and welfare system that rewards effort and fosters aspiration; a system that is fair and balanced for all Australians.
“One that doesn’t seek retribution but instead sets out to lift the living standards of all.”
Mr Morrison slammed the approach to economic policy of Mr Shorten and his treasury spokesman Chris Bowen that for sectors of Australian society to succeed someone else has to do worse or be held back.
“This is poverty thinking that seems to have completely captured the Labor Party and its leader, Bill Shorten, who has decided to embrace the extremes of politics, rather than pursue a sensible middle-ground economic path,” he said.