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🇦🇺 Australia /Economy & Trade

Butler dismisses One Nation tobacco tax cut plan as 'cheap headline'

From ABC Australia · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Context piece
  • Health Minister Mark Butler criticized a One Nation proposal to cut tobacco excise by 75 percent, calling it a "cheap headline."
  • Butler expressed confidence that most states will implement the Thriving Kids scheme on time as part of NDIS reforms, despite Senate amendments.
  • He also defended the government's forecast of minimal rental price increases following tax changes for property investors, contrasting it with a NAB projection.

Health Minister Mark Butler has dismissed a One Nation proposal to slash tobacco excise by 75 percent, labeling it a "cheap headline" and a "thought bubble." Butler argued that lowering the price of legal cigarettes would not effectively compete with the black market and questioned where a price point would be set to deter illegal sales.

cheap headline

— Mark Butlerdescribing a One Nation plan to slash the tobacco excise

Speaking on ABC's News Breakfast, Butler stated that governments typically do not engage in price competition with organized crime. He suggested that even abolishing the excise entirely would still result in legal cigarettes being significantly more expensive than illicit ones. "So that's why I think this requires more deep thought than frankly cheap headlines of the type we've seen this week," he said.

Government's aren't usually in the habit of engaging in price competition with organised crime. So you know, that's a hard line for us to cross.

— Mark Butlerexplaining why the government wouldn't cut tobacco prices to compete with the black market

Butler also addressed the government's National Disability Insurance Scheme reforms, expressing confidence that the Thriving Kids scheme, which replaces support for children under eight with developmental delays or autism, will be rolled out on time by all states except Queensland. He noted that states have implementation plans ready for October 1st and that these services are not new concepts, having existed before the NDIS.

Equally, no one's really said to me or the government where the price point that actually starts to move them out of the market. I mean, you could get rid of the excise altogether, completely abolish it, and still legal cigarettes would be signifcantly more expensive than the illegal product.

— Mark Butlerquestioning the effectiveness of price reductions on legal cigarettes

Regarding rental prices, Butler stood by the Treasury's forecast that recent tax changes for property investors would only lead to a $2 per week increase. This contrasts with a NAB projection of a 30 percent rise in rents in Sydney and Melbourne over the next two years.

So that's why I think this requires more deep thought than frankly cheap headlines of the type we've seen this week.

— Mark Butlercriticizing the One Nation proposal
DistantNews Editorial

Originally published by ABC Australia in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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