Beazley’s Rollback: All Talk, No Ticker
October 19, 2001Labor’s Black Hole: Econtech is Right and Labor Wrong
October 26, 2001
NO.087
MR CREAN’S TAX SCAM
Mr Crean’s press release today is a scam.
All he has done is to volunteer to spend money in one year on the theory that he will get back four times the amount one year later.
| Resources | $m | Return $m |
| 2001-02 | 18.7 | x 4 = 52 in 2002-03 |
| 2002-03 | 52 | x 4 = 210 in 2003-04 |
| 2003-04 | 54 | x 4 = 215 in 2004-05 |
Why not think big Mr Crean and give the Tax Office $10 billion. That way you would get $40 billion back and net off a profit of $30 billion?
Mr Crean has not suggested any legislative change to achieve this outcome. And he cannot identify who will pay it. He is manufacturing revenue.
We’ve heard this somewhere before.
On 11 February 1996 (21 days before the 2 nd March 1996 Election) Treasurer Ralph Willis discovered that he could raise $800m per annum of tax from High Wealth Individuals (HWI).
The measure description is attached.
The Coalition implemented this proposal and funded a HWI taskforce over four years. Incidentally it raised the following revenue:-
| Year of collection | Direct Revenue
$m |
| 1996-97 | 37.8 |
| 1997-98 | 23.0 |
| 1998-99 | 63.9 |
| 1999-2000 | 73.5 |
The High Wealth Individuals are being audited. The tax payable has been assessed. Future collections are already in the base numbers of the forward estimates. You cannot collect it again Mr Crean.
Mr Crean has invented money because the Labor Party promises now have the Budget going into deficit and we are still to see the Noodle Nation.
Noodle Nation, Noodle finance.
Canberra
24 October 2001