Another Version Of The Truth

Posted: March 25, 2013 in Local Politics, Politics

Thank whoever you choose as your god that the fictitious leadership crisis in the Labor party is finally over and done with. After all, Tony Abbott and his motley crew that make up the Coalition have had more than enough free kicks at goal lately.

Maybe now the mainstream press will let us discuss policy? Although, I have my doubts.

So, with the filing cabinet where the Coalition keep their policies full of not a lot but cockroaches and stale air, I thought it might be timely to have a peek at one of the few things that Tony Abbott has promised.

Tony Abbott has promised a great big new tax of sorts, however it will play out in the form of a company tax rise.  This will be to pay for his parental leave scheme that rewards rich families for having babies and punishes those on low incomes for wanting a family.

The promise is to raise the company tax rate by 1.5% for the countries largest 3200 to fund the scheme, however this number is a little misleading, the true cost will be much higher and we will all pay for it, and pay big.

The actual increase in the company tax is 5%, as that is what the 1.5% rise equates to when the current company tax rate is taken into account. Companies paying 5% more than they do under a Labor government.

Abbott explains how after his tax hike petrol stations will be something we push our cars past...

Abbott explains how after his tax hike petrol stations will be something we push our cars past…

Ask those in a small business how they would feel about a 5% increase in taxes on the top 3200 companies will affect them and I don’t think they will have a lot of positive things to say. Then again, what would small business know? They are only Australia’s biggest employer, and who knows how many companies it could end up being once the scheme starts.

Many of these businesses are doing it tough under a high Australian Dollar already, and call me sceptical, but I can’t see a company tax hike of 5% making them rush out to hire staff.

I did a little research and checked out the amount of extra tax that would be paid by seven companies that I’m sure we could all agree would be significant to most Australians. The chart below shows the extra tax that would be paid by these companies under a Coalition government based on last years reported financial figures from these companies.


Profit 2012

Extra Tax To Pay Under Coalition

Commonwealth Bank


$106.5 Million



$88.5 Million




Wesfarmers (Coles, Bunnings)





$51 Million




Origin Energy


$14.7 Million

If Tony Abbott thinks that a bank will just sit there and cop an increase of $106.5Million in costs on the chin, then he is more ignorant than I gave him credit for. Call it a hunch but I can see a raft of new charges being imposed on us. In particular the new home buyer will probably be slugged in home loan application costs adding to the cost of a new home, Real Estate Agents will be impressed.

An energy company with $14.7Million added to their tax bill, I don’t imagine power bills will be going up.

Probably the scariest of the above figures is the Wesfarmers figure, the thought of a grocery retailer copping an extra $31.89Million tax bill doesn’t make me believe the “Down, Down, Prices are down” line will be around long-term.

Not only will I slash your pension, but you'll soon be paying an extra $2 for each of those items....

Not only will I slash your pension, but you’ll soon be paying an extra $2 for each of those items….

Looking at the grocery prices issue it is not only the retailer that is in Abbotts sights for a tax hike, it is going to also be many of the grocery suppliers paying the 5% as well, and many of their suppliers, and their suppliers suppliers, etc etc….

If we take grocery suppliers like Nestle, Arnotts, Kellogs, and Kraft for instance. Each of these suppliers will be paying the extra 5%. Each of these companies also has hundreds of suppliers in fields such as raw materials, packaging, IT Supply, Marketing, market research, transport and logistics, power, water, refuse, cleaning, accounting, and the list goes on and on, many of these also paying the 5% extra tax.

It is impossible to work out the actual cost to consumers of this promised tax hike from The Coalition, all we know is that there will be one and it will be significant.

Enjoy them while you can. Under Abbott affording fresh food could be a fond memory

Enjoy them while you can. Under Abbott affording fresh food could be a fond memory

To absorb this would involve drastic cost cutting which invariably means overseas sourcing (already happening in banking sector) and a mass increase in unemployment.

People have questioned Tony Abbott and other Coalition members about whether they will rule out a rise in the GST rate, but with a policy like this they won’t need to.

For those of you wondering why the Coalition don’t want to talk about any of the few policies they actually have pulled from the filing cabinet filed under the “Bad Ideas” and dusted off, this is a prime example. Not to mention an expensive one.

It is up to us to make sure people are aware of this.

We sure as hell can’t rely on News Ltd.

Like Wixxyleaks on Facebook here

Like Wixxyleaks on Facebook here

  1. hayzeee says:

    Wixxy once again the Liberal play book of ‘mean & tricky’ comes out (unlike Pyne), what you expose here is simply a new big GST slug by stealth…well done for bringing it to our attention.

  2. pgc69 says:

    What really gets me about this new tax is that if the CEO of the Westpac gets maternity leave (admittedly at 56 it is unlikely) she would receive $9 million per annum whilst a lowly clerk would get 50K. The inequity is appalling.

  3. pgc69 says:

    What really appals me about this new tax is the inequity involved. If Gail Kelly decided to have a child (admittedly a bit of a stretch at 56) she would receive pro rata of $9 million whilst a lowly clerk would be hopeful of getting 50K. Is one really worth 180 times as much as another?

  4. David says:

    Onya Wixxy for continue to expose these Torys for the dirt bags they are. I tried to explain to a 74 yr old this morning that Abbott will reduce her pension if he wins Govt. Her response, WTE Oh he wouldn’t do that he is a good catholic boy, was about to be a priest you know, but he was called to serve us as PM. Promised I would return with something in writing and another chat.

    This is what the Govt is up against. The message must be redirected away from the MSM. it was never being told anyway. More personal contact with proof, not just words. Heaps more letterbox drops and letters from Govt MP’s.
    Social media is being practically ignored and sites like yours.

    The PM is well aware of how Pres Obama cleverly sectioned off the American voters, pensioners, GLBT, Latinos, African Americans, Asian, White and blue collars workers, Unions etc all targeted as individual groups using social media and 5th Estate.
    Murdochs media, shock jocks, Republican supporting MSM had to go looking for news and lies and bullshit were met with public denials immediately.

    Its clever and it worked. I hear ALP has employed the young Australian who masterminded the campaign, however no sign of his influence as yet.
    Time to strike at the heart of Abbotts lies and misinformation. He has had long enough to peddle his shite from Bullshit Mountain

  5. salzagal says:

    Firstly, i think Abbott’s scheme is unnecessarily generous – particularly to those who least need it and nor do i like his funding proposal for it.
    However, i am wondering how you arrived at your figures, and your statement that a 1% rise in Company Tax equates to a 3.3% rise. How?
    I don’t know if there has been a change in the Lib plan, but of course there is nothing of substance in the Lib Plan (pamphlet, even if it has a lot of pages!), and the only thing i can find is the actual policy doc from the 2010 election.
    This tells us that there will be a 1.5% levy on businesses with net income over $5 million p.a.
    Anyway, people didn’t go for it last time so i don’t see why they would this time, especially now 2 weeks partner leave has been added to Labor’s sensible, affordable plan already operating.

  6. Heather says:

    Thanks Wixxy. God I wish the average Jo out there was reading this. Might give them something to think about.

  7. clarittee says:

    I doubt that this policy has strong support in the business community or the LNP. Tony has to overturn Gillard policy or ‘trump’ it. This is stupid policy. More so that abolishing everything if he is elected. How can one claim a “mandate” over the whole gamut of actions and demand the Labor party recognise this “right’ if Labor lose the election. He has got to get it all through the senate. So much for the all important “certainty” they rat on about. The certainty IS important . It’s just that it is applied when suitable and not at other times.

  8. BillK says:

    You make no mention of the well known fact that the Libs will scrap the Carbon Dioxide Tax. Accordingly the cost of electricity to business and private users will reduce by the amount of the CO2 contribution.

    Also company tax is only paid if the business makes a profit. I can confirm that under this marvellously cohesive Labor government we have, after 24years in business, made a substantial loss. I’d be happy to pay the extra company tax if we can become profitable once again.

    Labor does not understand small business and none of my associates have a kind word to say about them.

    • wixxy says:

      Thanks for your comment Bill.

      If supporting small business means looking after the big businesses that seek to send small businesses bust so that they can take them over or knock of their customers, then so be it, as someone who also owns and runs a small business I don’t see that logic, but that’s just me….

      The well known fact is that Abbott has promised to move the carbon price, a promise that most believe he can’t keep. However even in the unlikely possibility he can, that will end the compensation payments that are helping the economy tick along.

      Anyway, I made no mention of the carbon price in this post because it is irrelevant, Abbott has already confirmed how he will pay for his parental leave scheme, and scrapping the carbon price will only make him have to slug business harder if anything.

      The Liberals also plan to take away the extra dollars small business can write off as equipment costs without receipts which saved a lot of paperwork for thousands of small businesses. The Coaltion will bring all that extra work back, and you will pay an extra 3.33% tax for the privelege, but I guess thats because they understand small business????

      I would suggest your losses are nothing to do with any Labor policy, certainly not the carbon price which hasn’t been in yet for a financial year to judge it from, and that is where you think the blame lies then you don’t understand the concept of financial years and I don’t really hold a candle for you or your esteemed associates in any kind of business sense whatsoever.

      The only possible thing that Labor could have possibly influence that may have affected you would be the Aussie Dollar. If that is the case than you are saying that running an economy that is the envy of most other nations and one of the strongest in the world is a bad thing, as that is why our the dollar is strong.

      If you actually checked out the rates in which power has gone up, you would see that the carbon price impact was miniscule compared to the huge hikes that have been put in place by those “small business friendly” Coaltion state governments, in NSW O’Farrell had pre-approved an 18% hike that kicked in July 1. Approved in 2012, timed to try and blame the carbon price…. nice and deceptive.

      I sincerely hope your business picks up, but I fail to see how paying extra tax will help you…

      • Anne says:

        It is really amazing how abbott has got into the heads of some people.
        Do they ever listen to what Greg Combet has to say.
        I wonder what they will say if abbott goes through with a chain saw.
        The whingers have never had it so good and never will with abbott.
        My power bill is no big deal. It shows what goes to the carbon pricing and
        it is minimal. Stop wasting so much electricity is the answer.
        Load of rubbish Bill electricity prices will go down if abbott scraps the Carbon Tax.
        That’s what abbott wants you to believe.
        It can’t be done and I hope not. Like many other people I will lose that assistance from the Labor government which pays my electric bill.

      • BillK says:

        Wixxy you have completely missed the point.

        We are not paying any tax this year, we have made a loss. It’s not big business sending us broke. Our problems are largely due to the our customers being unsettled by the circus pretending to be a government, and very few customers are making large purchasing decisions. This seems to be happening in many industries.

        People are cautious when the government makes erratic decisions, (remember the beef export fiasco? How about pink batts where a number of contractors went to the wall when the plug was pulled?). We did not buy any equipment to depreciate as you can not trust the government. They are likely to change the rules after you make a commitment, At least the coalition appear to be much more stable in their decision making. The government has a much larger influence on society than you think.

        As I said I’ll be happy to pay the extra tax, at least we will make a profit if we have to pay tax. Unless things improve we will close when our lease ends in15 months and put several people out of work. Something which Labor policies seem to be doing on a regular basis. Just check the number of small and medium businesses closed in the last 2 years and you will see how well Labor is looking after small business. According to Dun & Bradstreet small business failures in the last few years under Labor are up by 48%. Google it to check.

        The cabon tax is very relevant. Abbott has already said “there will be no carbox tax under the government I lead” and you will find he is a man of his word (contrary to Gillard). The carbon tax is the driver of many increases and cost pressures. I find it strange that people like Anne are happy to pay extra electricity charges, when the government itself admits that the carbon tax will not help the envronment. Pollution levels are still increasing. So why are we paying a tax which is purported to help the environment, but fails to do so? It’s simply another tax grab.

        Furthermore, your caption in the picture above is deceptive ” Enjoy them while you can. Under Abbott affording fresh food could be a fond memory”. How can you call that “another version of the truth”? You know that’s utter crap. Fresh food prices can go up or down depending on supply, and to blame that on Abbott or his policies is something Komrade Gillard would do. I thought you had more credibility than that.

        Anyway according to todays poll, Labor will be lucky to have 40 seats in the next Parliament and some adults will get back in to pay back the borrowings and provide some stability. Good luck voting Labor next time.

      • wixxy says:

        Hi Bill,

        I understood you made a loss, however I don’t see any way that that can be blamed on Gillard, maybe your customers are scared of what will happen under a Coalition that has a $70Billion black hole before they have even started.

        I do remember the beef fiasco, a self regualted industry system set up under the Howard govt that due to public outcry on the grounds of moral decency had to be tempoaraily closed while we sorted out the mess.

        I also remember the BER scheme that had less than 2% complaints despite it having to be rolled out in virtually no time to keep thousands of builders from going under when the GFC hit. Of course I remember the pink batts farce, designed to help small business and rorted by fly by nighters who took advantage of the holes left in the industry again from the Howard govt.

        Gillard romised a carbon price pre election and that is what we got even saying she would consider it a mandate if she tok government, a carbon tax is what Abbott had suggested in a TV interview when Howard was in govt.

        The Hypocrisy of saying a mining tax will hurt investment and cripple the minng industry while putting their tax rate up by 5% is ridiculous. The same as increasing the tax on the big power companies while complaining about the costs of them lowering their emissions is infantile.

        As for my comment under the picture, it is called a joke, a sense of humour is needed when looking at one of the rare Coalition policies that have been released.

        Polls change daily, and Tony Abbot is the best thing going for Labor currently as even hardened Lib voters are scared of what someone that inept will do to the country.

  9. Mr. Eyesore says:

    Actually, the numbers are worse than those in your table. They are the Net Profit After Tax figures that publicly listed companies report each year.

    So, for example, the Commonwealth Bank would have made a pre-tax profit of about $10 billion and paid company tax of about $3 billion. They’d be up for an extra $100 million or so.

  10. “People have questioned Tony Abbott and other Coalition members about whether they will rule out a rise in the GST rate, but with a policy like this they won’t need to.”

    This is worse than raising the GST. With GST a company gets a deduction for any GST paid by a supplier so an increase in the GST rate means a bigger deduction on their supplies as well as the increased cost. Not so with a levy or an increase in company tax as Abbott is proposing here as there is no deduction for those.

  11. BSA Bob says:

    Hi Wixxy
    Numbers make my head hurt & there’s been very little in the media about funding (wonder why? I don’t). But my last recollection of this was that on learning of their prospective contribution, business had told Abbott to piss off. Which he did but came back in a bit with the offer of compensatory tax cuts, effectively cancelling the whole thing out. Leaving the question of who pays. A question not taken up by our friends in the fourth estate.

  12. Pkd says:

    How much would News Ltd themselves have to pay? Would they declare this as a Liberal Party donation?

  13. Just a quick question. And I’m not defending the prick. But isn’t the company tax increase only on the top 3000 businesses? If that is indeed the case, then would a small business have to pay that extra 3.3%?

    I’d just like to disclose that I am a sole trader and don’t pay company tax anyway 🙂

    • wixxy says:

      Actually you are right, it is the top 3200 companies who will be paying it and I was wron on the figure, the rise is actually 1.5% which makes it a 5% increase.I have ammended my figures now… thanks 🙂

      The flow on to small business who rely on these companies will be catastrophic, not to mention waht it will do to our cost of living….

      • hayzeee says:

        Wixxy, this is big!…MSM will try to bury it..All non-MSM and truly independant bloggers need to spread this information…Thanks BillK for getting my attention and getting me to test the modelling of these figures accurately for SME’s…anyway you cut it this is retrograde economic taxation with a huge potential legacy to future superannuants, investors, small and medium business enterprises and householders…Anyone but Abbott should be the catchcry for all non-Liberal candidates and parties…

  14. ManUnplugged says:

    The simple solution for Mr Rabbit will be to look at the books once he gains the PM-ship and declare the Paid Parental Leave scheme can’t be funded and wasn’t such a good idea after all. Who cares? He has the keys to The Lodge! He finally made PM!

    The ‘no new tax’ will ensure business will be happy, the consumer will be happy, pensioners will be happy, the papers will be happy and the mothers or intending mothers who voted for him and overlooked his Catholic-ridden misogyny, will disappear into the dust once more without a trace …

    Howard – The Sequel.

  15. monicaswickedstepmother says:

    BillK, perhaps you should be putting the blame where it really lies – the Coalition have been “talking down the economy” since they lost power in 2007. Apparently they think this activity will be rewarded by gaining Government. Only then will they stop their attempts to destabilise the economy.

    This is easily demonstrated, as consumer confidence is noticeably lower for Coalition voters – the very people who listen and act on what their leaders say.

    • hayzeee says:

      Well said, Monica, I was just about to respond to BillK when I read your submission. Wixxy is of course correct in his responses to BillK, but to continue to follow that distracting thread leads us all off the main issue ABBOTT WILL INCREASE TAXES & REMOVE CONCESSIONS…it is a preposterous un-Australian approach by a man who does not deserve to be PM. For mine, it is anyone but Abbott no matter how dysfunctional Labor may appear at present.

    • BillK says:

      Bob Hawke famously said ” if you can’t govern yourself, you can’t govern the country” . Right on both counts.

      Abbott does not have to say anything. Gillard keeps shooting herself in both feet regularly. The voters have tuned out of Labor’s BS.

      If the latest polls are anything to go by, Labor is gone in all marginal seats up to 6%. We will all soon be celebrating a landslide to the Libs.

  16. Anne says:


    tony abbott a man of the truth. You better get him to write everything down, as he is known to have said. His verbal promises mean NOTHING

    Where have you been the past 2 years, but certainly reading the Murdoch press.

    You will rue the day like so many other voters IF abbott wins.

    Do you know why people are not buying? I will tell you. abbott and his idiot treasurer are telling lies about the economy and people are frightened. If he would keep his mouth shut you would get customers.

    Go to Independent Australia website and read the TRUTH. Murdoch and the MSM feed you and the voters absolute rubbish as he, as in Murdoch wants to rule this Country and abbott, as he is a dictator for the rich.

    Now go to the INDEPENDENT AUSTRALIA website and get real information and that might help you survive without worrying.


    • BillK says:

      Anne as if Gillard speaks the truth? What a joke. She has never answerd a question asked. She answers every question BUT the one asked.

      I have been ruing the day Labor got in for 6 years. Clearly Labor’s efforts have been pathetic. Quite frankly the lady from the corner shop could do a better job than Gillard.

      No – I will be celebrating an Abbott victory. Gillard is gone. Cheers.

      • wixxy says:

        Bill I recall Gillard standing in front of a press conference and not leaving till they ran out of questions…

        They would still be there of what you say was correct

        I’d like to see Abbott do that…

      • BillK says:

        Yes Wixxy, it was a joke. Much like your poor attempt at humour saying we could not afford fresh food under the coalition.

      • wixxy says:

        true words spoken in jest….

  17. Andrew Thomas says:

    Hi Wixxy and Pgc69

    wixxy .. Huge fan.. love all you stand for. .. from Craig Thomson to kids at home alone you call it right.!! This article is also accurate and deserves MSM attention, however because we are accurate on this site Wixxy I implore you to add to your response to PGC69 that the maximum Gail Kelly would get is 75K as the scheme proposed by Abbott is capped at $150K meaning six months paid would be half $150K. Still completely wrong an obscene vote buyer from Mr Weathervane. Team the facts are on our side we can call it right and must correct every little error we make as Wixy I know you always do!!

    Keep up the good work. Hey Just thought of a great segue foerm your article ..DOWN DOWn Jackson and Lawler goin DOWN ( to tune of coles Ad) !!

  18. Anne says:


    We would be just as well banging our head off a brick wall, for people like BillK are not worth bothering about. Like Paola wrote in The Guardian UK says THE AUSTRALIAN WHINGERS
    have not a thing to whinge about.
    Not Pommie whingers anymore and they have lots to complain about with the Tory Prime Minister Cameron.


    • BillK says:

      Hey Anne,

      Here is a short list of Labor’s achievments:

      Feel free to add to them if you wish.

      1.. Carbon Tax – “There will be no carbon tax under the Government I lead.”

      2.. NBN – $50 billion but no cost-benefit analysis

      3.. Building the Education Revolution – The school halls fiasco

      4.. Home Insulation Plan (Pink Batts) – Dumped

      5. Citizens Assembly – Dumped

      6.. Cash for Clunkers – Dumped

      7.. Hospital Reform – Nothing

      8.. Digital set-top boxes – Cheaper at Harvey Norman

      9.. Emissions Trading Scheme – Abandoned

      10. Mining Tax – Continuing uncertainty for our miners

      11. Livestock export ban to Indonesia – Over-reaction

      12. Detention Centres – Riots & cost blow-outs

      13. East Timor ‘solution’ – Announced before agreed

      14. Malaysia ‘solution’ – Only just agreed, sort of

      15. Manus Island ‘solution’ – On the backburner

      16.. Computers in Schools – $1.4 billion blow out; less than half delivered

      17. Cutting Red Tape – 12,835 new regulations, only 58 repealed

      18. Asia Pacific Community – Another expensive Rudd frolic. Going nowhere

      19. Green Loans Program – Abandoned. Only 3.5% of promised loans delivered

      20. Solar Homes & Communities plan – Shut down after $534 million blow out

      21. Green Car Innovation Fund – Abandoned

      22. Solar Credits Scheme – Scaled back

      23. Green Start Program – Scrapped

      24. Retooling for Climate Change Program – Abolished

      25. Childcare Centres – Abandoned. 260 promised, only 38 delivered

      26. Take a “meat axe”’ to the Public Service – 24,000 more public servants added

      27. Murray Darling Basin Plan – back to the drawing board

      28. 2020 Summit – Meaningless talkfest

      29. Tax Summit – Deferred and downgraded

      30. Population Policy – Sets no targets

      31. Fuel Watch – Abandoned

      32. Grocery Choice – Abandoned

      33. $900 Stimulus cheques – Sent to dead people and overseas residents

      34. Foreign Policy – In turmoil with Rudd running riot

      35. National Schools Solar Program – Closing two years early

      36. Solar Hot Water Rebate – Abandoned

      37. Oceanic Viking – Caved in

      38. GP Super Clinics – 64 promised, only 11 operational

      39. Defence Family Healthcare Clinics – 12 promised, none delivered

      40. Trade Training Centres – 2650 promised, 70 operational

      41. Bid for UN Security Council seat – An expensive Rudd frolic

      42.. MySchool Website – Revamped but problems continue

      43. National Curriculum – States in uproar

      44. Small Business Superannuation Clearing House – 99% of small businesses reject it

      45. Indigenous Housing Program – way behind schedule

      46. Rudd Bank – Went nowhere

      47. Using cheap Chinese fabrics for Defence uniforms – Ditched

      48. Innovation Ambassadors Program – junked

      49. Six Submarines – none operational

      50. Debt limit to be increased to $250 billion – to pay for all of this

      51. Handling of the Craig Thomson affair. 154 charges

      52. Peter Slipper charged.

      53. Alcopops tax

      54. Ending the blame game

      55. Working cooperatively with the Opposition

      56. Taxation reform

      57. Making housing more affordable

      58. Ending homelessness

      59. Copenhagen Summit

      60. Endless promises of surplus budges. Not one delivered.

      61 Being led by the feral lunatic Greens

      62 Telling copious lies

      63 Relating to the community

      64 Wasting money on advertising a carbon tax that voters have already decided they don’t want

      What I’d like to know Anne, is why would you still support losers like the Labor Party?

  19. Joy Cooper says:

    My word, billk (good name for a business owner BTW), you must have plenty of time on your hands to come up with a dodgy list like this one. If you are so keen on lists I recommend you read the wish list put out by the IPA, They are after all the formulators of policy for the Liberal Party.

  20. […] in March I wrote a piece “Another Version Of The Truth” which went into the adverse effects of Abbotts Parental Leave policy, little things like soaring […]

  21. […] will be reassured knowing that his landlord Mirvac who own the Shopping Centre, will receive a company tax rate increase of 1.5% should Abbott win in September to cover the Coalitions parental le…. This will increase their company tax payments by a staggering 5% something that I’m sure will […]

  22. […] will be reassured knowing that his landlord Mirvac who own the Shopping Centre, will receive a company tax rate increase of 1.5% should Abbott win in September to cover the Coalitions parental leave scheme. This will increase […]

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