Iain Hall's SANDPIT

Home » Australian Politics » Abbott’s Paid Parental Leave Lies

Abbott’s Paid Parental Leave Lies

(by Ray Dixon – someone who can add up)

abbott20

The Coalition’s paid parental leave scheme will be administered through the Family Assistance Office and fully funded through a 1.5 per cent levy on companies earning more than $5 million in taxable income. This will affect only around 3,000 companies – less than one out of every 200 companies in Australia.

Those companies required to pay the levy will have this offset by the Coalition’s previously announced 1.5 per cent company tax cut.

The above is an extract from the Liberal Party’s own website headed “Tony Abbott – The Coalition’s Paid Parental Leave Scheme”.

Does anyone else see the contradiction?

Does anyone else see the falsehood in the claim that the scheme will be “fully funded” by a levy on large companies?

The lie in this scheme is so bloody blatant and obvious that most people seem to have missed it.

It’s in plain sight.

And here it is:

If you charge a company a 1.5% tax levy and then fully “offset” it by reducing their tax rate by 1.5%,it means they’re not contributing to it at all.

NOT. ONE. CENT.

Abbott’s scheme is NOT ‘”fully funded” by big companies. It’s not even partially funded by them.

In effect, the companies will pay NOTHING towards it, as their tax rate will remain exactly the same as it is now – 30%.

It’s business as usual for big companies and a free kick.

Abbott is lying.

The Coalition is lying.

The great bulk of the $5.5 billion annual cost of Abbott’s scheme will be met by removing the school children’s allowance and removing tax breaks to SMALL business.

In other words, it is ordinary Australians who will foot this bill, not big companies.

Abbott and the Coalition are concocting their costings to make it look like the scheme to pay wealthy people $75,000 to have a baby is not going to be a burden on the rest of us, but it’s a lie.

The truth is that Labor’s more modest PPL scheme costs only $1.8 billion per year … and you can’t pluck the extra $3.7 billion Abbott’s scheme will cost per year out of thin air.

It has to come from somewhere. And it will come from cuts to other areas. Cuts to families and small business.

While big business pays effectively nothing … but while their highest paid employees get a $75,000 gift !

And while pensioners go without any increases to their measly $19,000 per year.

It’s another Abbott lie.

Advertisements

6 Comments

  1. Richard Ryan says:

    Food for thought Ray! “One day the don’t knows will get in, and then where will we be” Spike Milligan. MY own opinion— Totally f*cked !

  2. Iain Hall says:

    Ray
    If the levy is being paid by those large companies (as it certainly will be) it does not make any difference at all that the general rate of company tax that they will be obliged to pay will be reduced by the same amount. It beggars belief that you should suggest that just because they won’t be any paying more of their incomes out to the government coffers means that they will not be paying anything at all. Further all other business will be getting a drop in their company tax rate (Including Ray Dixon enterprises) whcih big business will not enjoy.

    As I have said before you can argue about the perceived generosity of the scheme but there is no doubt that most of the women who will benefit form the scheme will not get anywhere near 75K and further I see some benefits to our society for our best and brightest women breeding wwhich would be beneficial in a eugenics sort of way.

  3. Richard Ryan says:

    Iain, you are so far up the Liberal Party, major surgery is required—–as it is, you have enough health problems already. I hate the Liberal Party for every thing it stands for. If this country gets involved in another American war—I will say no more,

  4. Ray Dixon says:

    it does not make any difference at all that the general rate of company tax that they will be obliged to pay will be reduced by the same amount

    Iain, please. Think about what you’ve just said. Abbott is taking 1.5% of profits from the big companies with one hand and giving it all back with the other.

    It does make a difference – if XYZ Ltd presently earns $1 billion in profit it pays $300 million in tax. And under Abbott, XYZ Ltd will still only pay $300 million in tax, being $285 million company tax & $15 million PPL Levy. I can add up, Iain, can you?

    As for tax reductions for small businesses (earning less than $5 million profit) going down from 30% to 28.5%, that’ll all be wiped out (and then some) by removing other tax deductions, like instant asset write off. Smaller businesses will be worse off under Abbott because he’s taking more from them than what he’s giving. But bigger ones will be better off because their tax rate stays the same and they are relieved of providing any parental leave whatsoever. It’s the Liberal way – look after the top end.

    But Abbott will still need to find the $5.5 billion per year from other sources. Some of it he’s getting from small business like me. And a lot is coming from families who will lose their child support payments. And self-funded retirees who will pay more tax on their investments.

    I can add up, Iain, can you?

  5. Iain Hall says:

    Ray

    It does make a difference – if XYZ Ltd presently earns $1 billion in profit it pays $300 million in tax. And under Abbott, XYZ Ltd will still only pay $300 million in tax, being $285 million company tax & $15 million PPL Levy. I can add up, Iain, can you?

    I certainly can add up Ray which means I can still see that the company IS paying, The lord giveth and the lord taketh away… its ridiculous for you to claim that they are not paying.

  6. Ray Dixon says:

    Iain, what’s “ridiculous:” is for you to claim the company XYZ is paying for the PPL without explaining exactly how. The reality is that XYZ will be paying the same tax under Abbott it pays now. That means Abbott has to look elsewhere to fund his $5.5 billion per year scheme as XYZ Ltd and the like are not giving him any more money than what they now give Rudd. Your failure to acknowledge that simple truth is astounding.

Comments are closed.

Welcome to the Sandpit

I love a good argument so please leave a comment

Please support the Sandpit

Please support the Sandpit

Do you feel lucky?

Do you feel lucky?

%d bloggers like this: