Plugging Australia's $12 Billion Budget Hole: Here Are The Tax Options Being Floated Today

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After a speech yesterday in which she said “all options” were back on the table, Prime Minister Julia Gillard has sparked speculation over how she will fund a $12 billion hit to budget.

In the address at a Per Capita lunch she said rather than chasing revenue, and “cutting to the bone,” the May 14 budget would be a long-term economic plan that would require funding.

“We believe that the whole of society should carry a fair share of the burden of funding Government, that the whole of society shares the burden of these saving decisions,” the Prime Minister said.

“Everyone benefits – so everyone contributes.”

Here’s some of the ideas being put forward this morning:

  • An increase in the Medicare levy
  • An additional levy to fund the National Disability Insurance Scheme
  • Increased capital gains tax on homes
  • Changes to private health insurance rebates
  • There’s good cause for guesswork. In her speech the Prime Minister said: “I have expressly determined we need to have every reasonable option on the table to meet the needs of the times, even options previously taken off the table.”

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