The Black hole in Bowen’s budget: Unemployed people don’t pay tax

Labor climate target risks 336,000 jobs

Labor’s planned 45% cut to Australia’s carbon emissions could hit the economy more than three times harder than Coalition climate policies, costing 336,000 jobs and causing an 8% drop in wages.

Source: AFR.com, March 2019

That’s just the start – more job losses will hit the building industry because of his Negative gearing and abolition of CGT discount and his Minimum wage policy.

  1. “Labor’s $32 billion plan to end negative gearing for existing homes and slash the capital gains discount would lead to a fall in new housing construction of up to 42,000 dwellings over five years and 32,000 fewer jobs across the country, according to independent modelling of Bill Shorten’s key property policies” – The Australian
  2. “By May 2019, a contracting Building industry had already shed 40,000 workers” – ABC Report
  3. Another 28,000 jobs. “Bill Shorten pledges to lift minimum wage, but businesses are warning job cuts could follow” – ABC News.

The Black hole in Bowen’s budget:

  • If 506,000 people claim the Newstart allowance, expenses will rise by up to $6.25b
  • If 506,000 people (on the median salary) no longer pay income tax, revenue will fall by at least $2.13b per annum.

“Jobs and growth” is not just a slogan, it is sound economics.

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