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Abbott slams prospect of new flood tax

A new tax isn't needed to pay for the nation's flood reconstruction, says Opposition Leader Tony Abbott.

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Source: AAP


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A new tax isn't needed to pay for the nation's flood reconstruction, says Opposition Leader Tony Abbott.

Prime Minister Julia Gillard has flagged spending cuts as well as a special flood levy to cover the mounting economic impact of the floods.

But Mr Abbott has slammed the prospect of special one-off flood levy.

"The prime minister is clearly softening us up for another new tax," Mr Abbott told ABC Radio on Friday.

"I'm opposed to unnecessary new taxes and that's what this is." He said the government should instead sell off Medibank Private, redirect stimulus money and abandon or delay the broadband network rollout.

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"There will have to be very substantial commonwealth government spending as part of the recovery and reconstruction phase, but there's a right way and a wrong way to find that money," Mr Abbott said.

"You don't need a levy here because there is out-of-control government spending which can easily be reined back and reprioritised."


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