Liberals line up to attack Abbott government’s economic plan

FORGET Labor. Today, Tony Abbott is copping it from a very senior figure on his own side of politics. What’s behind the spat?

Joining the fray ... West Australian Premier Colin Barnett has also offered Abbott and Costello some free advice.

THE economic policies of Tony Abbott and Joe Hockey today are under fierce attack — from fellow Liberals

Labor is almost a mere bystander as current and past Liberal leaders line up to challenge the direction the Prime Minister and Treasurer are taking just weeks from their second Budget.

And some hostility is growing over what one federal minister calls “the free advice”.

Former treasurer Peter Costello today used his Daily Telegraph column to again criticise the government, this time mocking the promise of a lower, simpler fairer tax system in the government’s tax discussion paper.

“Ever since we have been flooded with demands for taxes that are higher, more complicated, and less economic. ‘Lower, simpler, fairer’ is looking like a morbid joke,” wrote Mr Costello.

Less than impressed ... Peter Costello.

The former treasurer, now a businessman and chair of the $96 billion Future Fund he created when in office, took specific aim at discussions about a bank deposits tax and forcing more revenue from multinational companies.

Mr Costello said this was an attempt to redistribute wealth.

“The welfare system is the way to redistribute income. That is not the role of the tax system,” he wrote.

“The tax system is there to raise government revenue at the lowest cost in the most ­efficient way doing the least damage to the economy.”

Treasurer Joe Hockey returned the Costello mockery as he dismissed his predecessor’s advice.

“Everyone’s entitled to give free advice and frankly, that’s what it’s worth — it’s free advice,” he told Sky News from New York.

Joke’s on you ... Peter Costello, left, with Tony Abbott and Joe Hockey at a past Liberal Party dinner.

Mr Hockey pointed to the government’s achievements in ending the carbon price and removing the mining tax.

And with a jab directly at Mr Costello, he said: “I would suggest that people stop looking back to what it was and focus on the challenges of today and tomorrow, no matter who they are.”

Mr Hockey, facing a revenue fall because of a collapse in iron ore prices, said he wished he had the $25 billion a year extra which had been available to Mr Costello.

The friendly fire on the government continued from West Australian Liberal Premier Colin Barnett who was protesting against a shrinking share of the GST take, aggravating a decline in mineral royalties.

Prime Minister Abbott wants the states to sort out the distribution of the tax revenue as it is their money. But it is unlikely a premier would be prepared to sacrifice income to help WA and this is adding to demands for leadership on the issue from the Federal Government.

Meanwhile the Premiers, led by Liberal Mike Baird of NSW, are pressing the Federal Government to overturned a big cut in health funding set to begin in three years.

Joining the fray ... West Australian Premier Colin Barnett has also offered Abbott and Costello some free advice.

Originally published as Liberals line up to attack Abbott government’s economic plan