The Coalition on Wed 28.8.2013, revealed details as to how it proposes to “get the Budget back under control”. The Coalition confirmed that it would “abolish the carbon tax and associated spending measures apart from the compensation to households in the form of lower taxes and fortnightly pension increases”. It also confirmed that it would “abolish the mining tax and most of the associated spending measures”.

However, the Coalition said it would “proceed with the budget bottom line savings as presented in the Pre-Election Economic and Fiscal Outlook (PEFO)” released by the Government on 2 August 2013. It said this “applies to all savings other than those specifically identified by the Coalition as unacceptable such as the changes announced by the Government on FBT for motor vehicles”.

Further savings announced by the Coalition involve:

  • discontinuing the tax loss carry-back measure;
  • discontinuing the instant asset write-off;
  • removing accelerated depreciation for motor vehicles; and
  • discontinuing the phasing down of interest withholding tax on financial institutions.

The Coalition said its announced savings is worth $31bn across the forward estimates. The Coalition indicated that further details will be announced after all of its policies have been released before the end of its election campaign.

Source: Coalition media release, 28 August 2013

[LTN 167, 29/8/13]