2014 Budget countdown: 7 days to go

The proposed 'debt tax' is coming under increasing scrutiny from within the Liberal party.
 
Learn more
 
 
 
 
 

01.Debt tax

Business man counts money

The idea of a "debt tax" has come under increasing scrutiny from within the Liberal party. Former Liberal treasurer, Peter Costello, has warned that the proposed debt tax will have no economic benefit, and says that the idea was floated to gauge reaction. 

The comments come off the back of comments by the lead author of the Commission of Audit report, Tony Shepherd, who has said that if the government introduces the debt tax, it will need to be careful about implementing report recommendations such as welfare cutbacks so as not to shock the system. 

Similar criticisms of the tax have also come from former Liberal leader John Hewson, who told the ABC this morning that there are better ways to raise the revenue, citing tax concessions in superannuation as an option. 

Teenagers forced to earn or learn

There have also been more budget leaks overnight with the ABC revealing that new measures are expected to be introduced to force teenagers to earn money or stay at school. 

It’s understood that school leavers will be required to wait six months before being able to apply for benefits. 

The idea is the result of a government-commissioned review of Indigenous training and employment by mining magnate Andrew Forrest. 

Forrest’s recommendation is that anyone under 19 should lose their welfare benefits if they are not in work or school. 

Alan Tudge, the prime minister’s parliamentary secretary for Indigenous Affairs, told the ABC it was considering the recommendations and that the “overall rule needs to be a hard one” in order to deter teenagers from leaving school and going on welfare payments. 


 
 

 

Sign up to our free
e-Newsletter

Receive FREE email updates of our latest tests, consumer news and CHOICE marketing promotions.

 
Your say - Choice voice

Make a Comment

Members – Sign in on the top right to contribute to comments