The Claim
“Broke an election promise by proposing a deficit tax.”
Original Sources Provided
✅ FACTUAL VERIFICATION
TRUE - The Coalition government did break an election promise by proposing and implementing the "deficit tax" (officially called the Temporary Budget Repair Levy).
The 2014 Australian federal budget, delivered by Treasurer Joe Hockey on May 13, 2014, introduced a 2% levy on personal incomes over $180,000 [1][2]. This measure was expected to raise approximately $2.5 billion per year over its three-year duration (July 2014 to June 2017) [1][3].
During the 2013 election campaign, Tony Abbott made explicit commitments including: "No cuts to education, no cuts to health, no change to pensions, no change to the GST and no cuts to the ABC or SBS" [4]. The 2014 budget broke these commitments, with the deficit levy representing a clear contradiction of the Coalition's anti-tax messaging during the campaign [4][5].
The levy was legislated as the "Tax Laws Amendment (Temporary Budget Repair Levy) Act 2014" and received assent on June 25, 2014 [6].
Missing Context
The structural deficit was known before the election. Treasury's pre-election fiscal outlook (August 2013) already projected a $30.1 billion deficit for 2013-14, and this was publicly available information [7]. Multiple independent economists and Treasury officials had warned about the structural deficit well before the 2013 election [8]. The claim implies the deficit was a surprise discovery, when in fact it was widely acknowledged.
The levy was targeted and temporary. Unlike broad-based tax increases, the deficit levy specifically applied only to high-income earners (top 2-3% of taxpayers earning above $180,000) [2]. It was explicitly designed as a temporary three-year measure, not a permanent structural change to the tax system [6].
Economic context. The budget faced deteriorating revenue conditions due to global economic factors, falling commodity prices, and the ongoing effects of the Global Financial Crisis [1]. The Coalition argued this temporary measure was necessary for budget repair, though critics noted it contradicted their pre-election rhetoric.
Source Credibility Assessment
The original source, Business Spectator, is a business-focused online publication (now part of News Corp Australia). The article by Tristan Edis is clearly opinionated and satirical, framing Abbott as a "comedian" for the perceived contradictions in his policy positions [8].
While Business Spectator is a legitimate business publication, this particular article is commentary rather than straight reporting. It presents valid factual points about policy contradictions but wraps them in mocking rhetoric. The article's characterization of Abbott as an "entertainer rather than a prime minister" reflects the author's viewpoint, not objective analysis.
The factual claims within the article (about the carbon tax costing $1.85b annually vs. the deficit levy raising $2.5b annually) are accurate, but readers should distinguish between the factual content and the opinionated framing.
Labor Comparison
Did Labor do something similar?
YES - The Gillard government's carbon tax broken promise is one of the most famous in Australian political history.
Before the 2010 election, Prime Minister Julia Gillard stated: "There will be no carbon tax under the government I lead" [9]. After the election resulted in a hung parliament and Gillard formed government with Greens support, the government introduced the Clean Energy Act 2011, which established a carbon pricing scheme (carbon tax) effective July 1, 2012 [10].
The carbon tax was set at $23 per tonne of CO2 emissions, rising to $24.15 in 2013-14 [10]. This broken promise became a central attack line for the Coalition throughout the 2010-2013 parliament and was cited as a major factor in Labor's 2013 election defeat [9][10].
Other Labor tax promise controversies:
- The Rudd government's means testing of the private health insurance rebate (2009), which broke a 2007 election promise [11]
- Various modifications to superannuation taxation during Labor's term
Comparison: Both major parties have broken significant tax-related election promises. The Gillard carbon tax promise breach was arguably more consequential politically, as it was a clear unequivocal statement made during an election campaign, whereas Abbott's promises were part of a broader set of commitments. However, both represent significant departures from explicit pre-election commitments.
Balanced Perspective
Legitimate criticisms of the Coalition:
- The deficit levy directly contradicted the Coalition's election messaging about taxes and their criticism of the carbon tax as a "great big new tax" [8]
- Tony Abbott's government broke multiple specific pre-election promises in the 2014 budget, not just on taxes but on education, health, and pension commitments [4][5]
- The "budget emergency" rhetoric was arguably overstated, given that Australia maintained relatively low government debt compared to other developed nations [12]
Context and justifications:
- The levy was temporary (three years) and progressive (targeting only high-income earners), distinguishing it from broad-based permanent tax increases [2][6]
- The government argued it was necessary for budget repair after inheriting a structural deficit [1]
- The measure was part of a broader budget that also reduced corporate tax rates from 30% to 28.5% from July 2015 [1]
Political pattern: Broken tax promises are not unique to either party. Australian governments facing budget pressures have frequently departed from pre-election tax commitments:
- Howard government: promised "never ever" to introduce GST (1995), then introduced it (1998)
- Gillard government: promised "no carbon tax" (2010), then introduced it (2012)
- Abbott government: promised no new taxes/cuts to services (2013), then introduced deficit levy and made cuts (2014)
This pattern suggests that pre-election tax promises in Australian politics should be viewed with appropriate skepticism regardless of which party makes them.
TRUE
6.0
out of 10
The claim is factually accurate. The Coalition government did break an election promise by proposing and implementing the Temporary Budget Repair Levy (deficit tax) in the 2014 budget. Tony Abbott had explicitly campaigned against taxes and made commitments about not cutting services or introducing new taxes, which the 2014 budget contradicted [4][5].
However, the claim benefits from context: the structural deficit was known before the election, the levy was temporary and targeted at high-income earners, and both major parties have significant histories of breaking tax-related election promises—most notably Labor's carbon tax promise breach which was arguably more consequential.
Final Score
6.0
OUT OF 10
TRUE
The claim is factually accurate. The Coalition government did break an election promise by proposing and implementing the Temporary Budget Repair Levy (deficit tax) in the 2014 budget. Tony Abbott had explicitly campaigned against taxes and made commitments about not cutting services or introducing new taxes, which the 2014 budget contradicted [4][5].
However, the claim benefits from context: the structural deficit was known before the election, the levy was temporary and targeted at high-income earners, and both major parties have significant histories of breaking tax-related election promises—most notably Labor's carbon tax promise breach which was arguably more consequential.
📚 SOURCES & CITATIONS (12)
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1
2014 Australian federal budget - Wikipedia
Wikipedia -
2PDF
Final Budget Outcome 2014-15
Archive Budget Gov • PDF Document -
3
Budget's petrol shock will leave voters fuming
Motorists will pay more for fuel in future and it looks set to keep rising as Prime Minister Tony Abbott prepares to break his no "new taxes" promise for a second time; this time by taxing petrol at a higher rate.
Brisbane Times -
4
Then and now: the Abbott government's broken promises
On the eve of the 2013 federal election Tony Abbott promised no cuts to education, health, or the ABC and SBS, and no changes to pensions. Fairfax Media looks at how those promises fared in the Abbott government's first budget.
The Sydney Morning Herald -
5
Tony Abbott promises no cuts to education, health and other areas on the eve of the 2013 federal election
ABC Fact Check determines the accuracy of claims by politicians, public figures, advocacy groups and institutions engaged in the public debate
Abc Net -
6
Tax Laws Amendment (Temporary Budget Repair Levy) Act 2014
Federal Register of Legislation
-
7
Hockey has promises to keep in budget battle
There was a certain audacity to the way Treasurer Joe Hockey this week went about announcing the government's long-promised audit of government finances.
The Sydney Morning Herald -
8
Tony Abbott - Comedian extraordinaire
Tony Abbott thinks a $1.85b carbon tax will destroy the economy, but a $2.5 billion deficit levy will save us from a 'crisis' and a $5.5 billion hit to the budget to pay mothers to take a 6 month break from the workforce will boost the economy. As a Prime Minister he makes for a great comedian.
Comedian extraordinaire -
9
Gillard's carbon tax promise: A definitive history
Abc Net
Original link no longer available -
10
Carbon pricing in Australia - Wikipedia
Wikipedia
-
11
Rudd breaks health rebate promise
His fans may call him "different" or "freaky," but actor Paul Reubens, who rose to fame as kids' television show host Pee-wee Herman, wants people to know he is neither a paedophile nor a child pornographer.
Abc Net -
12
Australians think Federal Budget 2014 is the worst in a very, very long time
IT’S a total stinker and it’s been a long time since we’ve seen anything like it.
NewsComAu
Rating Scale Methodology
1-3: FALSE
Factually incorrect or malicious fabrication.
4-6: PARTIAL
Some truth but context is missing or skewed.
7-9: MOSTLY TRUE
Minor technicalities or phrasing issues.
10: ACCURATE
Perfectly verified and contextually fair.
Methodology: Ratings are determined through cross-referencing official government records, independent fact-checking organizations, and primary source documents.