“Deficit tax” will have impact on EAs

RTBU National Secretary Bob Nanva says the Abbott Government’s so-called “deficit levy” would have an impact on enterprise agreements in the future if it is announced by the Government in the upcoming Federal Budget.

Bob Nanva said that if the Government moves ahead with its plan to increase tax, unions will have no choice but to push for higher wages to offset the effect.

“There’s no question that union members across the country will now expect their officials to push for higher wages to offset the effect of Tony Abbott’s unfair tax grab,” Mr Nanva told The Australian.

“Employers ought to begin banging down the door of The Lodge for an explanation of why labour costs are about to soar.”

The Abbott Government hasn’t ruled out introducing a new tax in the budget which could raise the income tax rate by one per cent for those earning between $80,000 – $180,000 and by two per cent for those earning above that. The speculation comes despite The Prime Minister going into the last election promising not to introduce any new taxes.