'Welfare for the wealthy': Chris Bowen doubles down on Labor's tax changes

4 February 2019
The Age


Labor has slammed the use of tax rules on property and share dividends to offer "welfare for the wealthy" in a sign it will not back down on plans to raise more than $80 billion despite the Morrison government's escalating attacks on the proposed changes.

Shadow treasurer Chris Bowen has defended the Labor measures as a way to fund more health and education services, arguing the government can no longer justify concessions and cash refunds to wealthier Australians.

"Simply put, each of these subsidies have become a vehicle not to make Australia a fair place, but to provide further support to those who need it less than others,” Mr Bowen said in a speech on Monday night.   

"In many cases, it’s welfare for the wealthy – at the expense of every other Australian and the schools, hospitals and services they rely on."

The Labor tax changes include scaling back concessions on negative gearing and capital gains tax, raising $32.1 billion over a decade, and halting many tax refunds under dividend imputation rules, raising $55.7 billion over a decade.


Liberal MP Tim Wilson is seeking to rally self-funded retirees against the changes to dividend imputation in order to keep their annual cash refunds under the rules, in a controversial use of a parliamentary inquiry holding public hearings this week.

The Labor deputy chair of the committee, Matt Thistlethwaite, has expressed concern at elements of the parliamentary inquiry including a partisan site set up by Mr Wilson to encourage submissions and attendance at the public hearings.

Mr Bowen said the concessions and refunds had to be scaled back.

"Frankly, I find it perverse that we send cheques to people with big share portfolios that amount to more than we provide a pensioner with no assets and no other income source," he said.

"Governing is about choices, about priorities.

"Those priorities are measured by the things you choose to invest in. And also the behaviour you reward through the tax system.

"Labor’s plans reflect the fact we think investing in a world class education system for future generations is more important than funding the world’s only tax giveaway to shareholders who didn’t pay tax.

"Because the real question with any tax subsidy is: who benefits? For what purpose?"

He said 70 per cent of the subsidy provided by the capital gains tax discount goes to the top 10 per cent of income earners and 50 per cent of the negative gearing tax subsidy goes to the top 10 per cent of income earners.   

"Half, fully half, of the benefits of dividend imputation refundability that go to self-managed super funds go to balances greater than $2.4 million," he said.

The concept of "welfare for the wealthy" has been debated in the United States in recent years, at times to argue against tax breaks in Republican Party policy, and could spark a similar debate in Australia ahead of the election.

"Labor has not one skerrick of complacency about this election," Mr Bowen said.

"We have too much respect for the Australian people to take anyone or anywhere for granted. We know we need to earn every vote and every seat.

"If life was fair, Elvis would be alive, and all the impersonators would be dead."  David Lee Roth?

But seriously, look at history. Labor, and by association, the Greens, have only one solution to any problem . . . more tax. This would seem justified to some, but the problem is that they will just piss it away like any other level of taxation. And then they will want more to pay for stunts like Universal Income, which is Green policy.

According to Bowen, giving someone back the tax they didn't need to pay is a subsidy. What a fukkwit.

crocodile wrote on Feb 5^th, 2019 at 7:34am:


Get the fact correct fwit they didnt pay the tax at all!

aquascoot wrote on Feb 5^th, 2019 at 8:16am:


So in your limited opinion giving more to those who already have everything is your idea of a fair Australia....How many Chinese do the unemployed employ???

philperth2010 wrote on Feb 5^th, 2019 at 8:23am:


rich people dont buy trinkets, play pokies and buy smokes.
they pour excess cash back into the business.

google mckenna transport in brisbane which started with 1 truck and now has 200.
employing lots of aussies.

take away his extra cash and give it to the "non wealth creators" and it all evaporates.
it is spent on rubbish that employs no one in oz and builds nothing and achieves nothing.

if you had a team of racehorses and one was a champion , would you give them all the same feed and vet care. of course not.
the wealth creator must be treated the best.
ITS CREATING ALL THE WEALTH TO FEED THE OTHERS 

Frankly, I find it perverse that we send cheques to people with big share portfolios that amount to more than we provide a pensioner with no assets and no other income source," he said.

Does society believe in the $20,542 tax-free threshold or not?

Bear in mind, many of these retirees paid up to 60% marginal tax rates back in the day, and have been slugged with a 10% tax on goods and services ... now ... they are going to have those two nongs Shorty and Bowen rip away on average $5,000  from their annual income.