$500 million black hole in Labor’s cost of living policies

Joint media release with
The Hon Angus Taylor MP
Shadow Treasurer

Senator Dean Smith
Shadow Assistant Minister for Competition, Charities and Treasury

12 October 2022

Labor is preparing the ground to abandon its commitment to providing tax relief because its own policies simply don’t add up.
Treasury costings confirm there is a $500 million black hole in a key policy Labor was relying on to offset their larger deficits.

Prior to the election Labor claimed its policy to increase penalties under the Competition and Consumer Act 2010 would raise $557.7 million in its first four years.

But Treasury’s costing of the Government’s legislation shows that it will actually raise a mere $63 million in its first four years. 

Shadow Treasurer Angus Taylor said the black hole in Labor’s costings explains why Labor is looking to break its promise to support legislated tax relief.

“Labor talked a big game about these policies before the election, but now it’s clear they don’t add up,” said Mr Taylor. 

“Labor is coming after the money of hard-working Australians because it doesn’t have a plan to pay for its big spending policies.” 

Shadow Finance Minister Jane Hume said the black hole further demonstrates that Labor has no plan to bring down the cost of living for Australians.

Senator Hume said, “Labor said its competition policy was about reducing the cost of living, but it is clear that it was actually just a way to raise revenue - revenue that the Treasury says will never materialise.

“This is further evidence that Labor has no plan to reduce the cost of living. When you don’t have a plan, you plan to fail.”

Shadow Assistant Minister for Competition, Charities and Treasury Dean Smith said Labor’s competition policy black hole is proof revenue raising, not competition and consumer issues, are Labor’s policy priority.

“The ACCC has a vital, respected role in regulating and promoting competition and protecting consumers, and it should not be regarded as a back-door way of underwriting Labor’s budget overspends.”

“Improvements to competition regulation are a critical part of any future productivity gains and Labor has diminished the role and influence of the ACCC by turning it into a revenue raising vehicle,” Senator Smith concluded.