Promise check: No tax reform beyond multinationals

Promise check: No tax reform beyond multinationals

At the 2022 election. Labor promised no tax reform bevond its proposed multinationals tax changes. Here's how that promise is tracking.

Stack of fifty dollar notes (Image by ABC News: Nick Haggarty)

Following Labor's election loss in 2019 when it had campaigned for major structural reforms to the taxation system, the party promised not to revisit such proposals if it won office in 2022.

"The Shadow Cabinet and Caucus have today confirmed that Labor in government will … maintain the existing regimes for negative gearing and capital gains tax," a 2021 press release reads.

In January 2022, then shadow treasurer Jim Chalmers told Brisbane radio presenter Scott Emerson: "We've said for some time Scott, that we wouldn't be taking the same set of tax increases to the next election that we took to the last election. We've made it really clear in areas like negative gearing, and franking credits and the like, that we wouldn't be going down that path."

During the election campaign on April 24, Mr Chalmers ruled out any tax reform outside those already announced relating to multinational companies.

"We have said that we're not proposing any tax reforms beyond the proposals that we will shortly make about multinational tax reform," he told ABC's Insiders program.

Speaking at a National Press Club debate on May 4 he reiterated this promise: "We are only taking to this election one tax reform proposal and that's multinationals."

2022-federal-election-treasury-debate-960x640.jpg

IN FULL: Josh Frydenberg & Jim Chalmers Address the NPC for the 2022 Treasury Debate

Mr Chalmers made the promise at the National Press Club.

Watch video on YouTube

Assessing the promise

In his pre-election statements, Mr Chalmers committed to no "tax reforms" beyond Labor's multinational tax policy while simultaneously describing the multinational policy as "tax reform" and Labor's "one tax reform proposal".

On this basis, the promised multinationals tax changes are considered to be an appropriate yardstick for what constitutes tax reform.

These changes were described by Labor's pre-election documents as "modest and responsible measures [that] are expected to raise $1.89 billion over the forward estimates".

For this promise to be delivered, there must be no alterations to Australia's taxation regime beyond the proposed multinationals tax changes. Alternatively, any other changes dealing with taxation must be lesser in magnitude or importance than the multinationals proposal.

Editor's note (June 28, 2024): An earlier version of this article stated that the government's promise would be delivered if there were no "significant alterations" to Australia's taxation regime. The article has been updated to more clearly define Labor's parameters for assessing this promise.

Here's how the promise is tracking:

19 May 2023

Share

19 May 2023

Share

More Promises

Toddler girl playing with wooden blocks

Promise check: Increase child care subsidy rates

Before the election, Labor promised to increase child care subsidies for all families earning up to $530,000, as well as extend the increased subsidies to outside school hours care. Here's how the promise is tracking.

A fist in front of a blurry figure

Promise check: Legislate 10 days of paid family and domestic violence leave

At the 2022 election, Labor promised to legislate 10 days of paid family and domestic violence leave. Here's how the promise is tracking.

Indigenous flag in front of parliament

Promise check: Hold a referendum to constitutionally enshrine a Voice to Parliament in the first term

At the 2022 election, Labor promised to hold a referendum to constitutionally enshrine a Voice to Parliament in its first term. Here's how the promise is tracking.

Pharmacist holding medicine box and capsule pack in pharmacy drugstore.

Promise check: Reduce the maximum charge for PBS scripts by $12.50 from January 2023

At the 2022 election, Labor promised to reduce the maximum charge for PBS scripts by $12.50 from January 2023. Here's how that promise is tracking.

Load more +
aboriginal flag
torres strait flag

Acknowledgement of Country

RMIT University acknowledges the people of the Woi wurrung and Boon wurrung language groups of the eastern Kulin Nation on whose unceded lands we conduct the business of the University. RMIT University respectfully acknowledges their Ancestors and Elders, past and present. RMIT also acknowledges the Traditional Custodians and their Ancestors of the lands and waters across Australia where we conduct our business - Artwork 'Sentient' by Hollie Johnson, Gunaikurnai and Monero Ngarigo.

More information