Federal Opposition Leader Bill Shorten (pictured) has firmly rejected Malcolm Turnbull’s proposal to share income tax with the states as a means to fund hospitals and other services.
“I can guarantee Australians a Labor government will not give income tax powers to state and territory governments,” Mr Shorten said.
“Mr Turnbull and his team have been dragged kicking and screaming to put together a bandaid solution for hospitals”.
“It is a bandaid for a bullet hole inflicted by Liberal Party cuts”, Mr Shorten claimed.
Criticism of Mr Turnbull’s radical tax proposal hasn’t been restricted to the Federal Opposition with many tax experts quick to pan the idea.
CPA Australia boss Alex Malley, voiced his concerns regarding Mr Turnbull’s surprising proposal, saying it will create enormous dysfunction in Australia.
“It will create more red tape, more taxes, everything this government says it doesn’t stand for,” Mr Malley said.
Despite Mr Turnbull’s claim that there would be no overall increase in income tax for taxpayers, Mr Malley disagreed suggesting that every state had a ‘different set of circumstances, cost structures and problems’.
“We are struggling to find how this is a sustainable model for the future,” he said.
The Tax Institute has also added its criticism describing it as a “retrograde and flawed” concept. The institute’s president Arthur Athanasiou said he has continually urged governments to shift away from income and inefficient taxes for the bulk of revenues.
“Whilst the proposal may present some theoretical advantage, government time and resources would be far better spent on reforming the present tax system,” Mr Athanasiou said.