Costello on Paid Maternity Leave

Peter Costello, Australia's longest serving and most successful Treasurer, has a column in today's National Times taking aim at Rudd's power grab, and Abbott's endorsement of socialism. An extract:

It's hard to decide whose idea was worse. First was Kevin Rudd, who announced he wants 30 per cent of the states' GST so he can "fix" the hospital system. Then there was Tony Abbott, who announced he wants to increase company tax to "fix" parental leave.

First to Abbott. He proposes a government payment to new mothers who leave the workforce of six months' salary on full pay up to $75,000. It is billed as the most generous state scheme in the world after Sweden - which in itself should have set the alarm bells ringing. For Liberals, that alarm should have sounded like an air-raid siren once Bob Brown and the Greens lauded the scheme.

Companies that already operate maternity schemes will close them and encourage employees to go on the government entitlement. And why shouldn't they? Otherwise they would pay twice - directly to their own employees and indirectly through increased taxes. So private benefits will be socialised, spending will rise and taxes will increase.

I have been to a lot of Liberal Party meetings in my life and I can honestly say I have never heard a speech in favour of higher tax. Sure, I have heard speeches in favour of replacing inefficient taxes with simpler ones (and indeed given a few of those myself) and I have heard people argue for better tax compliance as a way of reducing taxes for honest and enterprising folk. But the idea of increasing tax would be as foreign to the Liberal Party as voluntary unionism at the local ALP branch.

The Liberal Party is quite proud of the fact that in government it cut company tax from 36 per cent to 30 per cent and introduced full dividend imputation. At the time, it made Australia one of the most competitive tax jurisdictions in the developed world. Others are now catching and overtaking us. We cannot afford to go backwards.

Well worth reading the whole thing.

Comments

[Georgina]

1.

Big business did not utter a sound about Rudd wanting to increse taxes for his CPRS which is a dodo after the Copenhagen fiasco. And they are still determined to have their way (or else!!) Can't they see what is happening with the ETS they proudly espouse is in force in Europe. The USA, China, India and others will not have a bar of it. As for this CSIRO report, it is bunkum. I have lived over 80 years and can say that we had many days of temperatures much higher than today in the 20s and 30s. Peter Costello and other dead horses should butt out of politics now. He did a good job but has only been a nuisance since the Coalition has been in opposition speaking out against the leaders and staying on the backbench criticising. As for Keating - he is a has-been and will not lie down. Howard has not given his views on policy and has not said much except to approve Abbott. Keating said pity help Australia if Abbott becomes PM. I say pity help Australia with this mob in Government now. The insulation debarcle (which Rudd is trying to hose down by bringing out his usual rushed policy on health, the details of which nobody knows - as with the ETS) and all the waste, promises coming to nothing, summits, inquiries, "watches", unnecessary travek etc. have cost billions which we will have to pay back to our lenders. The interest is costing Australia billions. The only thing I say is that Tony Abbott should have discussed this with his Cabinet and not to forget the mothers who prefer to stay at home to nurture their children. A lot of these families are not well off yet these mothers feel that their job is to look after their babies at home.

[Robert Candelori]

2.

Costello is right on this policy. It is simply not defensible according to Liberal principles.

[Janet H. Thompson]

3.

Costello on Paid Maternity Leave

Wow, I didn't even know he was pregnant!

[Janet H. Thompson]

4.

Sorry...I just couldn't resist that one! (We ought to at least try to laugh sometimes!)

And now that I have read the entire article, rather than just the headline, I agree with Robert Candelori. Costello nailed this one, and I think most Libs know it.

Abbott will do well to recognise that the media attempts to give the wrong impression on just about everything. They give a 10% view coverage in excess of 50% to give the impression that the minority view is actually a majority view. That's why it's vital to stay connected to real, hard-working people.

I'm a woman, and I'm against additional taxation. I don't think I'm alone.

[Jake the Muss]

5.

I guess Peter didn't get Tim Andrews' memo...

[Jake the Muss]

6.

You aren't alone Janet. I too am a woman who opposes additional taxation.

[Justin Simon]

7.

How does this have anything to do with the ETS?

[Monika 500]

8.

I agree that many companies who currently offer their own "in house" maternity leave programmes would be better off ditching them to avoid having to pay twice. The companies who are expected to pay the levy/tax are most likely to be those who already offer a form of paid leave anyway. Perhpas they should be looking at tax incentives, such as a reduction in company tax payable or lower rates of payroll tax, to all organisations in return for funding their own schemes, and organisations would only qualify if their schemes met "acceptable" minimum standards.

[Russell]

9.

Justin, It is the same principle- pay a tax and Big brother government will fix it. Of course we all know government usually makes things worse. This scheme should also be opposed on the principal - the individual is responsible for their own actions and beliefs and should pay the consequences of those actions not society as is too often the case by individuals and corporations.

[Chris M]

10.

I suspect there is stuff in the Henry tax review about this.... could be an excuse for Tony to dump this crazy scheme.

Humans having survived for thousands of years without paid parental leave I wonder is it too simple just to reduce the cost of living instead of extra tax & handouts? Like free up land sales & usage to reduce the price of housing & thus average young folks mortgage payments, something like that.

Yeah I know Rudd was going to fix all these cost of living issues but he's a busy man, could take a few decades.

[Miscellany]

11.

I think people are missing the point here. From how I see it, this is only a policy proposal from the Leader of the Opposition.

Shouldn't criticisms and attention be directed at the current government's actual legislation? The government's legislation that are actually in Parliament, about to be debated and voted on?

With all this attention being paid to Abbott and the Coalition's policy proposal, an uninformed observer would've mistaken that they were the government and that Rudd Labor are in Opposition.

[Ross T]

12.

Once again Peter C has another case of foot in mouth disease. It is surprising our greatest treasurer can’t see the big picture of Australian politics and continues to pass out free passes to Kevin Rudd’s gang. Abbot has crafted a brilliant piece of wedge politics with this inspired policy. Critiquing a tax on big business on the basis that it will hurt the economy is a waste of time. Big business supported Kevin’s great big tax on everything until sceptics did the ETS fighting for them and refused to fight the biased union - work choice ads that saturated the airwaves last election so I reckon they have lost the right to expect lower taxes. 40% of GDP is being spent by govt’s across the nation so increased taxes are going to happen anyway – without the extra taxes we will end up like Greece.
Why no comment on the rapidly increasing US exchange rate and the resulting change in terms of trade, the chinese economic bubble and the RBA's intent to continue strangling Aussie business and home builders with higher loan costs compared to our overseas competitors Peter?