Ciobo: Labor tax plan ‘will rip rug out from city’s economy’

FEDERAL Minister Steven Ciobo has accused Bill Shorten of using a tax grab tipped to “rip” $260 million from Gold Coast pockets to pay for Labor’s “budget black hole”.

Data crunched by one of the nation’s most respected demographers yesterday revealed the Coast will be the epiccentre of Labor’s proposal to abolish cash rebates for tax credits on shares.

Mr Ciobo said Mr Shorten’s proposal meant Gold Coasters getting a pension, on a low-income or with a small self-managed superannuation account would no longer get a refund from the Tax Office for tax already paid on their shares.

“The Gold Coast will be one of the most adversely affected places in the country given we have a higher percentage of those aged over 65,” Mr Ciobo said yesterday. “Labor’s tax grab will hit Gold Coast pensioners and also rips money away from those preparing for their retirement.

“This is on top of Labor’s plan to hike up taxes on small and medium-sized businesses. These businesses are the lifeblood of the Coast’s economy.

“This latest tax grab is just another example of how Labor does not get the Coast. Their policy is a triple threat that will rip the rug out from our city’s economy.”

Labor’s policy would hit older Australians particularly hard, as more than half of franking credit refunds were paid to individuals over the age of 65, he added.

Mr Ciobo said the Turnbull Coalition Government was committed to keeping tax refunds for franking credits.

The $59 billion tax hit means one million Australians could be worse off with 2014-15 Australian Tax Office statistics showing more than half of franking credit refunds were paid to individuals over the age of 65.

However, speaking yesterday in the Victorian seat of Batman, where Labor is fighting to hold off the Greens at tomorrow’s by-election, Mr Shorten defended the policy arguing less than 10 per cent of pensioners would be affected.

He dodged questions about whether they would be compensated for the loss of tax credits, or whether he would rule out means testing the changes. But Mr Shorten hinted relief could be on the way, saying: “Labor will always be better for pensioners than the government.”

“I give this guarantee to Australia’s pensioners: you know the government for what they are, they don’t care about you,” he said. “We will always be better for pensioners.”