This is despite contradictory statements from Mr Abbotts office following his National Press Club address, and Joe Hockey telling ABC Radio National on 1 February: ... we will have tax cuts in our first term.
This morning Mr Abbott changed his position again on the Today Show:
HOST: So why then did Julie Bishop only call it an aim?This is an economic team that has no clear plan for tax reform, or for managing the economy.
ABBOTT: Well we were then saying, by the end of the first term of a Coalition Government, further tax cuts would be in prospect. That's what I said at the Press Club.
Tony Abbott says tax cuts are only in prospect, Mr Hockey says they will happen and Ms Bishop says they are only an aim.
The Labor Government has delivered $47 billion of personal tax cuts which have reduced the tax paid by someone earning $50,000 by 18 per cent.
Under Labor, all taxpayers with incomes of up to $80,000 will get a tax cut, with most receiving at least $300 per year. The Opposition will claw back these tax cuts with no guarantee of a tax cut in return.
The Opposition has also admitted they will claw back the real pension increases Labor is delivering this year for 3.4 million pensioners, as part of the Clean Energy Future package.
Under Labor, pensioners will receive a net increase in their pension payments over and above the expected average impact of the carbon price. The Liberals have confirmed 3.4 million pensioners will lose about $338 per year for singles and about $510 per year for couples combined, if Tony Abbott is Prime Minister.
We know the Opposition has admitted to a $70 billion hole in their finances, so it is not surprising that they are having an internal fight about not being able to afford tax cuts.
Not only are taxes lower under Labor, so are interest rates. A family with a $300,000 mortgage is now paying $3000 less a year than they were paying under the Liberals.
