Tax relief and home ownership at heart of opposition budget pitch, but savings lacking

Sydney Morning Herald

7 days ago

The Victorian opposition has sketched its plans for the state's financial recovery, with a promise to cut tax, restore budget integrity, reduce debt, enable home ownership and shift the balance of economic activity away from the public sector and towards private business.
Shadow treasurer James Newbury, delivering his first budget reply speech 18 months out from the next state election, offered a traditional liberal remedy to what he characterised as Victoria's 'slide' into a high-tax, high-debt, welfare state where 'the only sure thing is that when you put your hand in your pocket, Jacinta Allan's hand is already in there'.
The centrepiece of his budget reply – a pledge to lift the current first home buyer stamp duty ceiling from $600,000 properties to $1 million – is one of several tax changes the Coalition is promising to make if elected in November next year.
Newbury also said the Coalition would scrap recently legislated changes to the Emergency Services Levy, abolish the Short Stay Levy on Airbnb properties and reinstate payroll tax exemptions for non-government schools and GPs.
He said the stamp duty change, based on an estimated additional 17,000 exemptions a year, would cost $1.09 billion, the Emergency Service Levy $3 billion and the entire tax package about $4.6 billion over the four years of the budget.
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He did not nominate any savings measures to offset the reduced tax take.
Newbury flagged the introduction of a debt cap – to be measured as a proportion of gross state product – but declined to say what the legislated limit would be.
These omissions were derided by Finance Minister Danny Pearson, along with the recycled 'Go for Growth' title chosen for the Coalition's economic plan.