Economic freedom is at the heart of the Libertarian Party’s beliefs – a principle that ensures the rewards of your hard work stay with you and your family. Income tax removes incentives to work hard and smart. A low flat tax rewards your effort, ensuring you can build a better future for your family and community. Compulsory superannuation also works like a tax, depriving you of choices about your money.
The current business tax system is a hindrance because it taxes profits while businesses need to reinvest their earnings. High business taxes lead to fewer jobs and higher prices.
Overregulation burdens the economy by favouring larger businesses, which can more easily manage the associated costs. Red tape holds back innovation and prosperity.
Overregulation also favours bureaucrats – it creates busywork and enables them to make decisions for which they bear no personal responsibility.
Recently, Australia has seen unhealthy bureaucratic growth created by energy and climate change policies. But these policies cost you money – both in taxes to pay for bureaucrats and energy costs.
The government has no place running businesses in a free economy, including the National Broadband Network, the Australian Broadcasting Corporation (ABC), Special Broadcasting Service (SBS), and the Future Fund, especially when selling these assets to pay down debt is possible.
A free market empowers individuals, ensuring your choices drive innovation and prosperity.
The Libertarian Party will:
-
Raise the income tax-free threshold and implement a flat tax rate
The income tax-free threshold for individuals will be raised to $50,000 for individuals and $100,000 combined income for couples, indexed to inflation. Income above these thresholds will be taxed at a flat rate of 20%. The long-term goal for the Libertarian Party is a simplified tax system with a flat tax rate of 10%, in line with the goods and services tax.
-
Simplify business taxes by taxing only distributions
The company tax rate will be reduced to zero, with distributed earnings taxed at the 20% personal and couples’ income tax rate. The position will be the same for trusts and partnerships, ensuring consistency and efficiency in business structures.
-
Make superannuation voluntary, giving individuals control over their own savings
Allow individuals to choose whether to participate in superannuation, removing all associated restrictions. Those with existing superannuation balances will have complete control over their funds, enabling them to use their money as they see fit.
-
Reduce government involvement in the economy
Reduce ATO staff by at least half over 5 years because flat tax rates will require less compliance staff, and it is essential to reduce the possibility of the tax system regrowing; similarly, scale back agencies such as the Australian Securities and Investments Commission and Australian Competition and Consumer Commissioner and the laws they administer; and sell government business enterprises, including the NBN, ABC, SBS, and the Future Fund, and use the proceeds to pay down debt.
-
Reform energy policy and remove carbon-based regulations
Abolish the Clean Energy Finance Corporation and the Renewable Energy Target, as they impose unnecessary costs on the economy. Additionally, the Libertarian Party will eliminate carbon emissions-based regulations for all new construction projects to streamline development and reduce costs.