Opposition under fire over tax plan

Embattled Federal Opposition Leader, Tony Abbott, has been criticised for planning a tax that would hurt the economy and put further pressure on Australian families.

Chris Bowen, Federal Minister for Financial Services, (pictured), believes that Mr Abbott had been disingenuous about his tax plan.

"Tony Abbott said the Coalition has no plan for ‘big new taxes’ – but hang on – one of the few economic policies the Coalition have offered is actually a plan to increase the tax rate on companies like Coles and Woollies by 1.7 per cent", Mr Bowen claimed.

During the current election campaign, Labor has raised concerns that the Opoosition's policy for an increase in company tax will be directly passed on to hard working Australians.

"These companies employ tens of thousands of Australians and are a key hub in the Australian economy, selling a significant amount of our groceries and petrol", Mr Bowen said.

"It’s a disastrous plan that would increase cost of living pressures for hard working Australian families who are already doing it tough. On top of Mr Abbott's planned service cuts to GP Clinics and other services families rely on, this would be crippling".

The Gillard Government is proposing to cut the company tax rate from 30 per cent to 29 per cent, which it claims will enable Australia to be more internationally competitive, and boost superannuation.

Mr Bowen has also been quick to point out that the business community has expressed deep concern over paying a 2.7 per cent higher tax rate.

"Australians have a right to question Mr Abbott's claim that he understands cost of living pressures when all he has done is present a plan that will push up prices and cut services", Mr Bowen has suggested.