Posted on 01. Jul, 2013 in News

The Napthine Government is taxing Victorian families more than any time in the past decade at a cost of $654 per tax payer per year, in a blatant backflip on the Coalition’s pre-election promise not to increase taxes.

Shadow Treasurer Tim Pallas analysed the Napthine Government’s two and a half years in office and found it had introduced or increased more than 150 taxes, fees, charges and fines.

In 2013/14, budget projections show that the Napthine Government will be 7.61 per cent of Victoria’s Gross State Product (GSP) in revenue, a bigger tax take than occurred under the previous Government.

The nominal figures amount to $3.95 billion more than in the 2010/11 Budget, a growth of nearly 17 per cent and at a cost to each adult Victorian of $654. In real terms, this is an extra $2.01 billion or $237 per Victorian adult.

Mr Pallas said the Napthine Government has increased fee and penalty units four times faster than GSP, explicitly as a revenue raiser.

“The Napthine Government was elected on a promise to reduce the cost of living for Victorian families and instead they have delivered a blowout in the number of fees, fines and taxes,” Mr Pallas said.

“Mr Napthine and Treasurer Michael O’Brien need to explain how the massive hike in taxes, fees, fines and charges benefit Victorian families.

“Every 2010 election promise this Government has introduced is costing Victorian families more after a budget blowout of $872 million which is why this Government is now the highest taxing in recent history.

“The Government obviously plucked numbers out of the sky before the last election, and Victorians are now paying the price for the government’s need to fund the blowout in its own commitments.

“Since the Napthine Government came to office, CPI has grown at 5.68 per cent, but the cost families face every day like education, childcare, healthcare and utility bills have skyrocketed.

Mr Pallas said the Government promised at the election that they would govern without ‘pushing up debt and…increasing taxes’ (Victorian Coalition Financial Policy, 2010, page 3).

“The 2013/14 State Budget revealed that this Government will triple debt in real terms with debt set to blow out to 6.6 per cent of GSP in 2014/15,” he said.

“This is typical of a Liberal Government that is hell bent on repeating the pain and hurt inflicted on Victorian families under the former Kennett Liberal Government.

“Despite the howls from Mr Napthine when in Opposition it seems his Government could not move quickly enough once in office to introduce new taxes, fee and fine increases.

“Sacked Treasurer Kim Wells made a lot of noise in Opposition about 21 taxes, fees and fines introduced over 11 years of the Labor Government, but this pales into insignificance against the more than 150 charges this Government has introduced in two and a half years.”

Some of the Napthine Government’s increases include:
• Drivers licence renewals;
• Vehicle registration;
• Driving and litter fines;
• Public transport fares;
• Police checks;
• Working with children applications;
• Fire Services Property Levy;
• Extended congestion levy;
• Increased childcare costs,
• Driven up water prices by gouging water authorities’ dividends;

Mr Pallas said these rises followed Napthine Government cuts to the Education Maintenance Allowance, restricted availability of the first home buyer’s grant; and the slashing of hundreds of millions of dollars from hospitals, schools, TAFE and police budgets.

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