Shock tax hike advice to Treasurer
First reported by the ABC, the details were mistakenly revealed in an unredacted Freedom of Information request submitted by the broadcaster and shared in an incoming government brief issued by Treasury after Labor won the May 3 election.
Although Treasury requested the documents be deleted and unpublished after noting the error, the ABC said the details were 'in the public interest'.
While no specific taxes were identified, the Treasurer was told he would need to identify 'additional revenue and spending reductions' in order to put the budget in a 'sustainable' position, the ABC reported.
The papers said 'tax should be raised as part of broader tax reform,' and suggested 'indirect taxes' and superannuation taxes as a potential avenues. Treasurer Jim Chalmers has been urged by Treasury to increase taxes in order to return the budget to a 'sustainable' position, unredacted documents have revealed. NewsWire/ Martin Ollman Credit: News Corp Australia
This comes as Labor intends to double the taxes on superannuation accounts above $3m, from 15 to 30 per cent, with Mr Chalmers stating the move would only affect 0.5 per cent of people.
However the Opposition has opposed the tax as the $3m threshold will not be indexed, with the tax also affecting unrealised gains, penalising people who hold property and other assets in their super portfolio.
In the unredacted papers, Housing Minister Clare O'Neil was also advised to 'adjust' Labor's 1.2 million homes target, which it currently must meet by June 30, 2029.
Ms O'Neil was urged to look at how migration and skills training could boost the construction workforce, and reassess how to best use state and territory grants as 'leverage' for improved home building rates.
Speaking on ABC RN on Monday, Environment Minister Murray Watt said it was 'not unusual' for a minister to receive advice from government departments.
He also said Labor remained committed to the Housing Accord targets.
'I, of course, haven't seen them (the Treasury advice documents) myself, but you will have seen that we've taken a lot of steps already to ensure that we can meet that housing goal,' he said.
'We recognise that it's ambitious, but it's certainly our intention to meet it.'
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