Jv AUSTRALIA,,^

PRIIV1E M IN IS T E R

FOR PRESS 20. NOVEMBER 1977

ELECTORATE. TALK

The election is aboilt many things - inf lation, unemployment,  national development and a secure future for all Australians. It is also about taxation.

Australian men and women now have a genuine choice - genuine options  between Labor Party policies on taxation and the Government's  policies. This will now be ia key and central election issue.

Mr. Whitlam has made no bones about his position and policies on  taxation. He will abandon outright our tax reforms and tax  indexation and will even recall Parliament to change the tax  laws.  .

In one stroke, in one desperate ploy, he has challenged the right  of all Australian taxpayers to have the tax yoke removed. Mr. Whitlam throbs his nose at the intelligence and judgement  of Australians. He falls victim to his own rhetoric "We ask

the overwhelming majority of Australians to forego nothing" he  declared.

"Nothing" is $6 a week for the wage earner on average earnings.  "Nothing"is being pushed back up to 45 cents tax rate for thousands  of Australians.

Our tax reforms have cut $3.3 billion from personal income tax over  two years. $6.3 billion will be saved over three years. Mr. Whitlam dismisses this as "nothing". Every Australian taxpayer,  without exception, will benefit from tax indexation and our new

tax reforms which take effect in every pay packet in less than  ten weeks time.

I make the point again.  This year alone, a person on average  earnings will be saving $6 a week on these two reforms. Mr. Whitlam clumsily dismisses the 225,000 additional low income  people who will pay no tax at all under our reforms. He will make

them pay tax again.

He dismisses the standard 32 cents rate of taxation - universally  applauded - that will now apply to nine Out of every ten Australians  Remember he would send thousands of people back to paying 45 cents  in the dollar.

He dismisses the incentive we have given for Australians on average  wages to earn another $6,000 without paying an additional cent in  marginal tax. To Mr. Whitlam, a marginal rate of 32 cents is worth  to use his own word - "nothing". '

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It is clear that he knows "nothing" about the concerns of  Australian taxpayers. Incentive, and the freedom to spend  one's own income are "nothincf to the Labor Party.

He would repeal the greatest tax reforms in Australia's history. But perhaps that is not surprising from the man whose Government  increased personal income taxes by 125%. Labor is nothing more,  nothing less than a high tax party - it has to be, to pay for its  programmes, for its promises.

Last week, Mr. Whitlam unveiled his Party's policies for the  next three years. He was less than forthcoming about the cost  to the Australian taxpayer. He has announced a big spending  programme and nothing he says can hide that reality.

In a replay of the old, failed, policies, Mr. Whitlam proposes  a crash spending programme of $800 million in six months, and  an extra $1,700 million to end payroll tax. Mr. Whitlam has  been deliberately vague about the precise details of his proposals.  Nevertheless, the cost is vast - thousands of millions of dollars.

He wants to bring in national superannuation which could cost  $2,000 million; go back to the old Medibank scheme at a cost of  about $700 million; take over local Government debt charges at  a cost of about $215 million; promote exports at a cost of some

$60 million; take over state country railways at a nett cost of  at least $90 million; and give tax deductions for mortgage  interest at a cost of $70 million.

Just these promises would cost more than $3,000 million - and there  are many more commitments which Mr. Whitlam has made.  How does  Mr. Whitlam plan to pay for all these schemes? He can get his  money in two ways. He says he will increase taxes, and it is

clear hewill also have to resort to the printing presses once  again - as he did when he had a chance on an earlier occasion.  Either w a y , it is a return to economic chaos.

We also know from bitter experience how Labor controlled the  nation's finances- or rather, how it failed to control them. Mr. Whitlam's actualdeficit in 1974/75 was almost five times  what he budgeted for as his spending went up by 46% in that one  yea r . Mr. Whitlam and his Party are still the Party of big

spenders and high taxes. They are still promising to spend  something they have not got.

My Government on the other hand will announce policies that the  nation can afford. They will be creative and imaginative  and designed to benefit all Australians. We will promise what  we have already delivered - and that is sound and solid  policies properly costed, properly planned.

Australia cannot afford and cannot risk the alternative.

