Guardian Australia asks two experts if eight ALP election policies can really be considered a ‘new tax’

Are any of the Coalition's claims of new Labor taxes actually true?

The Liberal party is claiming this election that Labor intends to slug Australians with a swag of tax grabs.

It identifies eight policies that it claims are “big new taxes”.

But is that right? Guardian Australia asked two experts which of these policies could actually be considered a “new tax”.

Coalition claim: retiree tax

Labor policy: Retirees, except pensioners, who pay no income tax will no longer receive a cash refund for fully franked dividends from their shares.

Is it a tax? No.

Why? The independent economist Stephen Koukoulas says there’s “no extra tax paid by anyone” under the policy.

Coalition claim: housing tax

Labor policy: An end to negative gearing – the ability to claim a tax deduction from a loss-making investment property for existing properties. The policy is grandfathered so existing investors are not impacted.

Is it a tax? No.

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Why? This policy does not hike taxes, it closes “loopholes”, says Koukoulas. “It is taking away a tax break, not imposing a new tax.”

Coalition claim: higher income tax

Labor policy: Support the Coalition’s Low and Middle Income Tax Offset, with a larger rebate for some income earners. Reverse the Coalition’s policy to have those on $45,000 and $200,000 pay the same 30% marginal tax rate by 2024. Reintroduce a 47% marginal tax rate, up from 45%, on those earning more than $180,000.

Is it a tax? Debatable.

Why? Koukoulas believes the reintroduction of the higher marginal tax rate is “actually a new tax”. But the Grattan Institute’s Danielle Wood views it an “increase” on existing taxes, not a “new tax”.

Coalition claim: investment tax

Labor policy: Wind back the capital tax gains concession from 50% to 25% for assets purchased after 1 January 2020.

Is it a tax? No.

Why? Koukoulas says: “(Removing) tax concessions … is not a new tax.”

Coalition claim: family business tax

Labor policy: A standard minimum 30% tax rate on discretionary/family trust distributions, which are used by small businesses but also, according to Labor, by wealthy Australians and those looking to minimise their tax.

Is it a tax? Yes.

Why? As Labor’s own website puts it, the policy will “introduce a new 30% standard minimum rate of tax for discretionary trust distributions”. Koukoulas argues this could be considered a new tax, while Wood agrees on balance.

Coalition claim: superannuation tax

Labor policy: Changes to the treatment of superannuation contributions, including going further than the Coalition’s reduction of the threshold on concessional contributions from $250,000 to $200,000. These contributions would be taxed at the normal 30% rather than 15%.

Is it a tax? No.

Why? In Wood’s view, this is another increase on existing taxes, rather than a new tax. Koukoulas agrees, saying that while these policies will have an effect on government revenue, changes to concessions are “not strictly a new tax”.

Coalition claim: electricity tax

Labor policy: By 2030, a target of 50% renewable energy and a 45% reduction on emissions on 2005 levels.

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Is it a tax? No.

Why? Koukoulas says policies that aim to encourage polluters to change their power usage are a “price signal”, not a tax. “A regulatory change can impact on prices but it is not a new tax.”

Coalition claim: car tax

Labor policy: A target of 50% of new car sales being electric vehicles by 2030.

Is it a tax? No.

Why? The tax rate on cars, electric, internal combustion or hydrogen, will be unchanged by the policy, says Koukoulas, because no one “buying a new car over the next decade, of any power source, will pay a different rate of tax”.