Federal election: Scott Morrison’s ‘iron-clad guarantee’ for no new taxes in next parliament’s lifetime

Prime Minister Scott Morrison has revealed why he’s promising $100 billion in tax relief for the next four years under a re-elected Coalition Government.

Prime Minister Scott Morrison will pledge an “iron-clad guarantee” that a re-elected Coalition Government won’t raise taxes in the life of the next parliament.

To be called the Lower Tax Guarantee, the promise is designed to seize the initiative from Anthony Albanese who has refused to rule out any tax increases

Labor has dumped the tax increases it took to the last election and says it has no plans to increase them if it is elected in May.

But it has so far stepped back from offering a guarantee they won’t rise.

It has also explicitly rejected the Government’s pledge to cap taxation at 23.9 per cent of GDP and according to government has made $302 billion in spending promises.

The Prime Minister said the commitment would give certainty to millions of workers, retirees and to small business across Australia.

Opposition leader Anthony Albanese posted a picture of himself and dog Toto while isolating at his home with Covid. Picture Facebook

“I can give the Australian people my iron-clad guarantee that taxes will always be lower under a Coalition Government than under Labor,” Mr Morrison said.

“Lower taxes are at the heart of our economic plan for a stronger economy and stronger future.

“Today I give the Australian people my Government’s Lower Tax Guarantee.

“I also guarantee that we will deliver $100 billion in tax relief over the next four years, providing Australians with certainty and helping to deliver a stronger economy.”

Mr Morrison said there was a clear choice at this election and Australians should know a vote for Labor would mean higher taxes with real consequences for mortgage repayments, grocery bills and the household budget.

“Labor has left the door wide open to introducing new taxes or higher taxes to pay for their spending initiatives, while they refuse to guarantee a tax speed limit,” he said.

“Our Government has delivered income tax relief for more than 11 million Australians and reduced small business tax rates to the lowest level in 50 years – we are the party of lower taxes.”

Prime Minister Scott Morrison speaks at the Central Coast and Hunter Valley campaign rally in the electorate of Dobell. Picture: Jason Edwards

The Lower Tax Guarantee will include no new taxes on workers, retirees, superannuation, small businesses, housing and emissions and electricity.

The Government will also pledge to continue keep taxes below 23.9 per cent of GDP.

The Government’s tax pledge comes a day after former Prime Minister John Howard entered the fray warning Mr Albanese’s failure to name the unemployment and RBA cash rates as symbolising.

“You’ve got to know at least roughly what the unemployment rate is, you’ve got to have an understanding of where the interest rates are,” he said.

Treasurer Josh Frydenberg said that Labor leader Anthony Albanese had in the past argued among others for a mining tax, carbon tax, housing tax, death duties and a retirees’ tax.

“Without a speed limit on taxes, our legislated tax cuts will not be safe under a Labor Government led by Mr Albanese who has called them “tax cuts for the top end of town” and “unfair tax cuts,” the Treasurer said.

Finance Minister Simon Birmingham. Picture: NCA NewsWire / Gary Ramage

Labor has pledged to keep the next round of income tax cuts which are scheduled to come into effect in 2024.

Finance Minister Simon Birmingham said Labor had made “$302 billion worth of vague spending promises” but was refusing to say how it would pay for them.

“At least Bill Shorten was up front about his $387 billion of tax hikes. Anthony Albanese dodges questions so that he can keep his high spending, high taxing plans secret,” he said.

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