TREASURER’S TAX GAFFE POINTS TO LNP’S $2 BILLION ‘BLACK HOLE’

Media Release

Shadow Treasurer Curtis Pitt says a gaffe by Tim Nicholls shows the Newman Government is on the hunt for new revenue sources to plug the $2 billion a year “black hole” it will create if it sells state assets.

In a “virtual town hall” meeting the Queensland Treasurer failed to immediately rule out the reintroduction of death duties that were abolished on 1 January 1977.

“This is a very revealing gaffe by Tim Nicholls and although he has belatedly ruled out death duties it is clear he is on the hunt for new revenue sources,” Mr Pitt said.

“His assurances about not raising taxes ring hollow because under the Newman Government average families of four in Queensland now pay $1,320 more in taxes each year than under Labor.

“It’s ironic that the day after South East Queensland’s first major storm of the summer Mr Nicholls pretends he hasn’t increased taxes, despite raising the insurance tax from 7.5% to 9% for home and contents insurance and other general insurances, and from 5% to 9% for motor vehicle, professional indemnity, mortgage duty and life insurance.

“When he was in Opposition, Mr Nicholls called insurance taxes a ‘windfall on misery’ but in office he increased that ‘windfall on misery’.

“Mr Nicholls also introduced an ‘emergency services’ tax on households and businesses after gutting the Department of Emergency Services.

“All-in-all, Mr Nicholls own Budget papers, prepared by Queensland Treasury, show an increase in taxes paid per person of $330, or $1,320 per family.”

Mr Pitt said the Treasurer’s death duties gaffe showed the LNP was hunting new revenue sources because it would lose $2 billion a year under its asset sales plans.

“Government-owned business operations like ports and power companies return around $2 billion a year to taxpayers so if they are sold taxpayers will wave goodbye to a total of $60 billion over the next 30 years if those assets are sold through the LNP’s sale-by-lease plan.

“In return the LNP wants Queenslanders to accept a one-off $8.6 billion infrastructure fund but can’t say where funds will be sourced for future projects once that ‘sugar hit’ is spent.”

Mr Pitt said LNP Ministers had already overcommitted the $8.6 billion pot of money.

“They have promised almost $10 billion in projects from a pot of $8.6 billion and this week Jeff Seeney may have added another $1 billion to the list with his secret deal on the coal haulage rail line in the Galilee Basin,” he said.

“Queenslanders should have no doubt - the LNP is looking for new taxes. Their track record is to deny it but do it later, after the election.”

Mr Pitt said Mr Nicholls should explain who paid for the “virtual town hall” meeting to push LNP policies.

“Are taxpayers footing the bill for what the LNP itself should be paying?” he said.

“While he is at it, Mr Nicholls might like to tell taxpayers how much of their money he is wasting on his Strong Choices LNP propaganda campaign

“This is a government that claims to be open and accountable but makes secrecy its first priority.

“He won’t declare the cost of the campaign which we estimate to be $20 million and growing, nor will he confirm an army of consultants will receive about $300 million if asset sales proceed.”