Australian Opposition Leader Denies Costello's Tax Allegations

by Mary Swire, Tax-News.com, Hong Kong

13 July 2001

Australian Opposition leader Kim Beazley has fiercely denied accusations made by the Federal Treasurer, Peter Costello that Labour would look at increasing income tax under a GST rollback.

Speaking in a talkback interview on Southern Cross Radio earlier this week, Mr Beazley said that he believed that the mix between direct and indirect taxation in Australia was wrong, and Mr Costello triumphantly seized on this remark as evidence that Labour would raise income taxes if successful in the forthcoming election.

'If you think the tax mix is too heavily weighted toward the indirect tax system then you are going to have to increase direct taxes, [and] that means higher income taxes,' he said. However, Mr Beazley has dismissed Mr Costello's interpretation of his remarks as lies, saying that any income tax changes under a Labour government would come when the budget could afford it and not before, and has stated that his only plan is to roll bank the phenomenally unpopular goods and services tax (GST).

'You now have for yourselves proof positive of the way the Liberals are lying in this campaign,' the Labour Party leader remarked cattily.

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