ARE they back steps or backflips?
ARE they back steps or backflips?
Both leaders of Australia’s major parties changed key aspects of their election campaign pitch this past week, Tony Abbott on the policy front while Julia Gillard altered her image.
Having questioned the value of Labor’s company tax rate cuts, a phased drop by one percentage point to 29 per cent by 2013-14, with small business provided that reduction a year earlier, the Liberals have offered a similar outcome.
Late last week Mr Abbott said a Coalition government would reduce company tax rate from 30 per cent to 28.5 per cent from 1 July 2013. This will provide a tax cut to all Australian companies.
He has also rejigged his parental leave scheme, pushing back the start to 2012 and slightly reducing the levy he would impose on big businesses to pay for it. The levy will be reduced from 1.7 per cent of profit on business with income over $5 million a year to 1.5 per cent, a tax that Mr Abbott said would be removed once the budget can afford it. For those companies exposed to the levy, company tax will, therefore, remain at 30 per cent until the levy is removed.
Until his scheme comes into force, Mr Abbott said he would keep Labor’s scheme offering 18 weeks’ leave paid at the minimum wage. If they won government, the Liberals would provide 26 weeks’ leave paid at the equivalent mother’s salary of up to $150,000.
The prime minister’s about face is literally, just that. Ms Gillard is altering her image to be more natural after her campaign appeared to have stumbled.
She said she was determined to break out of the stage management that has so far been the hallmark of her campaign, with puff pieces appearing in glossy magazines and language control so scripted that her repetition of the ALP slogan ‘Moving Forward’ has become comic material.
The rehearsed routines and limited public appearances have played into the hands of the opposition, which claims Ms Gillard is controlled by Labor’s behind-the-scenes factional leaders and unionists.
In another move that might appeal to Western Australians, Mr Abbott has flagged a review of the GST carve-up process.
Recent leaders of both WA’s parties have criticised the Commonwealth Grants Commission system, which allocates less than 70 per cent of the GST that the state would have if the process was conducted on purely per-capita terms.
Mr Abbott said he was responding to a letter written to him by WA Premier Colin Barnett.
Mr Barnett will also be pleased with policy expressions from Labor that appear to reflect his policy of allowing state schools a greater level of independence. Ms Gillard has announced that, if re-elected, her government would move to provide schools with greater autonomy.
