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One Nation's tax cuts would leave $4 billion black hole in Victoria's finances, analysis finds

Just one of three proposed tax cuts wipes out savings from scrapping Suburban Rail Loop and treaty

By LineZotpaper
Published
Updated
Read Time2 min
Sources4 outlets
One Nation's promise to repair Victoria's "broken finances" would instead create a $4 billion black hole, with analysis showing one of the party's three proposed tax cuts alone would wipe out all savings from its pledges to scrap the Suburban Rail Loop and the state's treaty with its First Peoples.

The finding, published in The Age, casts doubt on the party's central campaign claim that it can lower taxes, make housing more affordable and rebuild the state's finances if it wins government on November 28.

One Nation's "The Real Deal" policy platform pledges to wind back land tax increases introduced after the pandemic, raise the threshold at which small businesses become liable for payroll tax, and abolish stamp duty on insurance. In a separate Instagram post, the party also promised to abolish payroll tax for regional employers, a measure not mentioned in its published policy document.

Senator Pauline Hanson and Victoria's One Nation state leader Warren Pickering say these tax cuts, along with a long list of law and order promises including three new magistrates' courts, 30 extra magistrates, a 24/7 bail court, additional funding for prosecutors and Legal Aid defenders, and sign-on bonuses for experienced police, will be paid for by cancelling the Suburban Rail Loop and repealing the laws that enact the statewide treaty.

The party provided no details for its planned land tax or payroll tax changes, no costings for any of its policies, and no responses to questions from The Age, despite its policy document promising to be "honest about the numbers" and tell the truth about what the state can afford.

Property experts have separately warned that One Nation's prescription for Victoria's housing crisis will do little to improve affordability and could worsen the chronic shortage of new homes.

The party is currently attracting the support of 20 to 25 per cent of respondents in published polls.

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Analysis

Why This Matters

  • One Nation is polling between 20 and 25 per cent ahead of the November 28 election, positioning it to potentially hold the balance of power in Victoria.
  • Uncosted tax and spending promises undermine the party's central pitch that it will repair the state's finances.
  • A pledge billed as improving housing affordability could make the shortage of new homes worse, according to property experts.

Background

Victoria goes to the polls on November 28 with debt and the cost of living dominating the campaign. One Nation launched its state campaign in early October with a platform that pairs tax relief with an expanded law and order agenda, arguing these can be funded by cancelling major projects and repealing the state's treaty legislation. The party has yet to put dollar figures against any of its commitments.

Key Perspectives

One Nation: Argues its tax cuts, housing policies and law and order commitments can be funded by scrapping the Suburban Rail Loop and repealing treaty laws, and presents itself as the party that will rebuild the state's finances. Property experts: Warn the party's housing prescription will do little to improve affordability and may worsen the chronic shortage of new homes. Critics and analysts: Note the absence of costings and details, pointing out that one tax cut alone outstrips the savings from the two major spending cancellations, leaving a $4 billion hole.

What to Watch

  • Whether One Nation releases independent costings for its tax and spending commitments before election day.
  • The party's standing in polling as the campaign enters its final weeks.
  • How the Labor government and other parties respond to One Nation's fiscal arithmetic in debate.

Sources

Zotpaper

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