The federal Labor Government has delivered a strong program across personal income tax measures, proposals for more progressive super taxation, and for tax treatment of multinational corporate income. Progress too has happened on significant means-testing, including for aged care and childcare access, as well as ongoing updates to income support payment means-tests. A balance of revenue of labour and capital income, and from income and wealth, is exceedingly important to intergenerational equity and to economic and social progress going forward. The same balance, and an overall progressive outcome, are also needed for means-testing. The resistance of some to progressive taxation of growing retirement assets, when the poorest retirees have all assets fully means-tested, is a regressive stance that deepens inequity, both within and between generations.
General Resolution
Supporting intergenerational equity through balanced taxation and means-testing
Conference welcomes federal Labor's tax policy progress and means-testing reforms, including for aged care and childcare access, and calls on the ACT and federal Labor Government to: - Promote priority tax reforms to promote intergenerational equity, including the balance of tax on labour and on capital income, including residential housing rents and capital gains; - Consider how states and territories, which draw strong revenue from payroll tax currently, adapt to the growth of retirement income alongside labour income; - Promote the definition of a liquid asset as a central basis of the retirement system, noting all pensioners are asset tested on 'unrealised gains' and lose pension access or see payments taper as assets accrue; - Review means-tests in the social security system for the balance of income-based and asset-based testing; - Consider the precision and best approach to means-testing for non-employment income, including gifts.