Labor abandons trust fund tax reform, shadow treasurer confirms

Labor has confirmed that the party will not pursue broader trust taxes, abandoning the last tax reform package presented in the previous federal election as it further details its plan to strengthen the aged care sector before the May election.

Shadow Treasurer Jim Chalmers has said the only tax hike Labor is seeking now is for multinational companies. In Tuesday’s budget, the federal government also revealed plans to improve multinational tax compliance and collect $2.1 billion in additional revenue over the next four years.

“We have no proposals for tax increases beyond working with other countries to make the tax regime for multinationals fairer,” Dr Chalmers said in an interview with Sky News on Sunday morning.

“Our priorities are cleaner and cheaper energy, and cheaper and more accessible childcare, addressing skills shortages, building the digital economy, the care economy and making point.”

On Sunday evening, Labor revealed more details of its plan to improve aged care, announcing that it would cap the amount home care users can be charged in administration and management fees, which currently represent about 25% of home care costs according to the Grattan Institute. research.

“Whether you are in residential or home care, Australians need to trust that the money they pay is going where it should – to their care,” said Labor leader Anthony Albanese.

When pressed on Sunday to confirm Labor was abandoning its 2019 plan to impose a 30 per cent tax on family tax distributions, Dr Chalmers confirmed it was on.

“We are not bringing that policy to this election,” he said. “There was an agenda in the last election, which we are not pursuing.”

Policies to reduce negative debt and halve the 50% capital gains tax deduction have also disappeared from the Labor Party’s tax agenda. Labor adopted both policies in the 2016 and 2019 elections, but abandoned them in 2021 as the party prepared for a federal election this year, which was due to be held in May.

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