I didn’t watch the Liberals’ campaign launch, but according to the Sydney Morning Herald, Tony Abbott commended the review’s plan ”for lower, simpler, fairer personal income taxes and an end to the money-go-round that traps people in poverty”, with the journalist suggesting that would mean following one of the Henry Review’s proposals for tax reform – increasing the tax-free threshold to $25,000 and a flat rate of 35% up to $180,000 (45% thereafter).
That is strikingly similar to the Liberal Democrats’ 30/30 plan, although our tax reform is more comprehensive, incorporating a negative income tax component as a natural extension.
The LDP has always said we don’t mind people taking our ideas. In fact, we encourage it. I suspect ex-LDP luminary John Humphreys, who joined the Liberals to – I assume – help the libertarian wing of that quite conservative party, and who came up with the 30/30 plan almost 10 years ago, might have had something to do with it. Or at least, I like to think he did.