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Labor claims Coalition has $12.5b black hole in tax costings

The Sydney Morning Herald·James Massola, Shane Wright, Nick Newling·18 days ago
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Angus Taylor’s promise to deliver $22.5 billion in tax relief to Australians has a $12.5 billion black hole in it, according to new costings prepared by Labor, raising questions over how the opposition will pay for the cut if it wins government. The dispute over income tax figures heightens what has become a major political battleground after Labor on Tuesday delivered a budget that pared back major tax concessions linked to housing, decisions Taylor said he would repeal, describing them as “pulling up the ladder of opportunity” on young Australians. Opposition Leader Angus Taylor wants to index income tax rates, but Labor says the opposition costings are incorrect. Alex Ellinghausen According to the Labor estimate, prepared using the Parliamentary Budget Office’s “small model of Australian representative taxpayers” (SMART) tool, the true cost of Taylor’s pledge to index tax rates is $35 billion over four years, rather than the $22.5 billion estimate.…

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