Class war: Bill Shorten’s tax the rich election plan

BILL Shorten has set the platform for a class warfare election by proposing to tax the successful, reverse the Coalition’s corporate tax cuts and cap loans to private colleges.

BILL Shorten has set the platform for a class warfare election by proposing to tax the successful, reverse the Coalition’s corporate tax cuts and cap loans to private colleges.

The Opposition Leader used his Budget reply speech last night to outline a proposed $71 billion in savings over the next decade — to be funded by reversing tax cuts.

Labor will attack Australia’s successful middle-class in a bid to balance the books.

The credibility of the savings are questionable after Mr Shorten failed to mention Labor’s proposed tobacco tax once during the speech.

Opposition Leader Bill Shorten delivers his Budget Reply last night

Bill Shorten with wife Chloe, daughter Georgette and son Rupert after delivering his Budget Reply last night. Picture: Ray Strange.

This week, Treasury modelling found a $20 billion hole in Labor’s projected savings from its plan to increase the excise on tobacco.

That has left serious questions about how Labor will fund $70 billion in spending announcements that it has already made.

FULL TRANSCRIPT: SHORTEN’S BUDGET REPLY

Mr Shorten’s biggest policy announcement was to introduce an $8000 cap on student loans for private colleges in the wake of number of scandals in the sector.

Labor claims the cap — which would not apply to TAFE courses — would save $6 billion over the next decade as the VET-FEE HELP scheme blows out to $3 billion.

Some diplomas at colleges are costing up to $30,000.

“We will restore integrity to the training system by cleaning out the dodgy private colleges who have been ripping Australians off for too long,’’ Mr Shorten said.

“In 2014, the 10 largest private training colleges in Australia received $900 million in government funding.

“Yet less than 5 per cent of their students graduated.”

How Daily Telegraph’s Tim Blair sees it

Mr Shorten said too many students were graduating with diplomas that they could not get a job with. He said a Labor government would back the Turnbull government’s cuts to small business but it would notextend cutting the tax rate to 25 per cent for major corporations.

Mr Shorten claimed the decision would save $49 billion over a decade.

“Labor will support a tax cut for small business — but, unlike the Prime Minister, we will not use this as camouflage for a massive tax cut to big multinationals,’’ he said.

“Especially when the government is refusing to tell us the 10-year cost of their 10-year plan. Billion-dollar operations are not small businesses.

“Coles is not a small business. The Commonwealth Bank is not a small business.”

Mr Shorten said he would reverse the abolition of the debt levy on the highest earners if he won office.

“Now is not the time to give the richest 3 per cent of Australians another tax cut on top of this,’’ he said.

“Now is not the time to reduce the marginal rate for individuals who earn greater than $180,000.”

Other saving measures would include $1.4 billion by repealing the Baby Bonus, $1 billion abolishing the Direct Action Scheme and $160 million by voting on gay marriage in parliament rather than a plebiscite.

Mr Shorten claimed the Turnbull government’s first Budget was one for the rich.

“From Tony’s Tradies to Malcolm’s Millionaires, this is a Budget for big business,’’ he said. “Despite all their cuts and broken promises, in the past three years the Liberals have tripled the deficit.”