Confusion about carbon in Australia’s Liberal Party
Hockey rules out carbon tax compensation, The Age, March 6, 2013 Mark Kenny
Senior political correspondent Shadow treasurer Joe Hockey has again ruled out retaining Labor’s carbon tax compensation package, despite a Coalition source revealing similar measures will be taken to the election.
Mr Hockey said the Coalition remained committed to dumping the carbon tax and any sweeteners connected to it…. Mr Hockey’s comments suggested the Coalition was considering going to the election in September with a plan to increase taxes.
But they came on the same day Mr Abbott told a national newspaper that tax arrangements similar to Labor’s compensation package could continue. Mr Abbott said it should not automatically be assumed that the tax-free threshold, currently set at $18,200 in annual income, would be returned to its pre-carbon price level of $6000.
This raised the prospect of a Coalition government keeping part or all of the tax cut, even though Mr Hockey, who would be treasurer, appeared to rule that out completely. He claimed however that families would be better off though welfare payments and through tax cuts ”based on tax levels without the carbon tax”….
He said the Coalition’s expenditure review committee was working hard to identify savings from which to fund the competing tax cuts and assistance package.
Labor argues that the Coalition has no capacity to fund such measures, which are at present paid for by revenue from the sale of carbon permits.
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