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.Treasurer Bill Shorten has revealed the tax implications of his controversial plan to cap energy company profits.
Labor is calling for a new special purpose entity to be created to collect the excess revenue.
The plan has been condemned by some analysts, who argue it would put pressure on the state’s bottom line.
„The Treasurer says this won’t cost us anything, he says, yes he has the figures,“ Liberal Treasurer Tim Pallas said.
„But, he also says the figure he’s giving won’t include all the things that this will cost us, in fact, he’s only giving the money back to the Australian people.“
The scheme will see a cap of 10 per cent on energy companies‘ profit extracted from consumers.
Labor says the new company would employ a small army of bureaucrats and collect the money.
„It’s like having a tax office in every household, hundreds and hundreds of people employed to make sure the companies don’t get richer than they should,“ Mr Shorten said.
„What this shows is that you have to go after the big end of town, you’ve got to go after the excesses of the super fund, the excesses of the investment companies and the excesses of the energy companies.“
Mr Shorten says he can start picking up the pieces of the black economy.
The plan has received support from independent senator Nick Xenophon.
„These people are clearly prepared to be a bit more ruthless than Mr Abbott,“ he said.
But it’s been strongly opposed by the retailers and smaller energy companies.
Michael Fraser, who runs the small energy company, Eclipse, says it is unfair to blame the energy companies.
„I think that’s a bit of a tired argument to turn around and say that this is somehow bad, which this is what this is,“ he said.
„This is to put a band on the pig’s back, no this is good, they deserve it and they deserve a certain amount of money back.“
The Australian Competition and Consumer Commission has described the plan as „a disgraceful initiative“ which would put pressure on household budgets.
„This plan is about allocating a quarter of a billion dollars in extra revenue, that’s a significant amount of money that can actually be used for other investments in the economy rather than going straight into the pockets of these energy companies,“ chief executive, Graeme Samuel said.
“
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