Increasing taxes is not a second best option

Increasing taxes is not a second best option

“Tax levels should be part of any discussion about getting Australia’s budget into healthier shape”, said Lin Hatfield Dodds, National Director of UnitingCare Australia.

“Both income and spending need to be considered when it comes to getting Australia’s national accounts into the black. While the focus of public discussions of the past few months has been on government spending, consideration also needs to go towards raising enough through taxation to ensure we can fund the things that matter”, said Ms Hatfield Dodds.

“Some of the budget cuts that the government outlined in May concern us. Reduction in support for young people, changes in indexation to the aged pension and some cuts to family payments are measures that need to be reconsidered.

“The Finance Minister’s recent suggestion that raising taxes will be necessary if some key budget measures don’t pass the Senate, is not a cause for alarm. If additional revenue needs to be raised in order fund the things that matter most—essential services, infrastructure, and support for people who need it—then tax increases should be on the table”, said Lin Hatfield Dodds, National Director of UnitingCare Australia.

“The Government has already indicated a desire to tidy up some of their revenue streams through closing loopholes that allow some corporates to pay low levels of tax. This is a welcome step.”

“Beyond this, we also need to look at what we tax, and the levels at which we do so”, said Ms Hatfield Dodds.

About UnitingCare

UnitingCare Australia, an agency of the Uniting Church, represents one of the largest networks of social service providers in Australia, with a network that employs around 39,000 staff, supported by 28,500 volunteers, operating nationally across 1,600 sites in remote, regional, rural and urban Australia.

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