The Coalition says it would reverse Labor’s proposed tax changes, arguing they would make it harder for Australians to invest, grow businesses and transfer family farms to the next generation.
Nationals leader Matt Canavan said a future Coalition government would repeal what he described as Labor’s “bad taxes”, including proposed changes to capital gains tax, negative gearing and discretionary trusts.
“Labor’s broken promises Budget betrays the trust of Australians and will see regional Australians pay more,” Senator Canavan said.
“Returns for Australian farmers are skewed towards capital gain, not income, and so any increase in the taxation of capital gains is going to hit Australian farmers the hardest.
“According to industry, less than 50 per cent of Australian farmers now fall below the current thresholds, meaning they will now be subject to one of the highest farming asset taxes in the world.”
The Coalition claims Labor’s changes would see capital gains taxed at rates of up to 47 per cent for small businesses. It also says Labor would introduce a 30 per cent minimum tax on discretionary trusts and replace the existing 50 per cent capital gains tax discount with CPI indexation.
Federal Member for Page Kevin Hogan said the proposed measures would increase pressure on Australians who invest and operate businesses.
“There is no greater risk to Australia’s food security than Labor’s tax grab, with family farmers potentially facing effective tax rates well above what they are today when farms are sold, or restructured,” Hogan said.
“This would destroy returns to Australian farming and throw away all of the hard work many Australians have put into their farms over decades.”
Tatham farmer Chris Magner said uncertainty surrounding the proposed capital gains tax changes was creating challenges for farmers.
Magner said producers were being forced to consider costly property valuations without certainty about how any changes would affect them.
Lismore business owner Elton Cummings said the proposals were also creating uncertainty for business owners.
“If the rules are changing, how do you plan for the future?” Cummings said.
The Coalition said it would seek to improve living standards through a range of policy commitments, including indexing income tax thresholds to inflation, linking migration levels to housing construction, restricting welfare payments and NDIS access to Australian citizens, establishing a Future Generations Fund, strengthening fuel security, increasing small business asset write-offs to $50,000 and lifting defence spending to at least 3 per cent of GDP.
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