NationStates Jolt Archive

Heir apparent to King John I of Australia, Prince Peter Costello has released Australia's budget today.

http://www.finance.gov.au/budget/

Any comments about it, Australians? :)

I might be getting a tax cut :)

Tax scale changes
http://www.budget.gov.au/2005-06/overview/html/overview_08.htm#TopOfPage

Go johnny go.
you and COstello cut those taxes.
Wipe out all the state taxes and we will knight you

Go johnny go.
you and COstello cut those taxes.
Wipe out all the state taxes and we will knight you

If you check the income tax changes, the rich get the most benefit. The middle class, well, got ignored.

The stupid thing is some items are hit by state taxes and then wham, the 10% GST on top of them.

I would like state taxes to be abolished too, however if we do that then the states will rely on the Federal government for revenue which will lead to a further centring of power in Canberra.

Personally I think it is an OK budget, not as good as Costello's previous attempts IMHO. Yes, there are tax cuts for the moderatly wealthy (which I don't oppose despite not benefiting from it), but it would have been nice to see middle income earners given a bone.

One thing I am dismayed at is the changes to the PBS, as I understand it now you will only get two prescriptions every year rather than two, but you can't have everything I guess.

I would have liked to seen more spent on infrastructure; but I don't actually know how much is needed.

The lifting of the top bracket I feel was a good move, but I am suprised they did it so quickly. I feel that being charged practically 50% income tax before GST amounts to absurd, but I also realise that trying to change the top rate is very expensive, once you get to the people earning over a million a year.

I personally felt the budget did too much too fast with regards to cutting high income tax, and that there should have been a larger surplus instead.

I haven't analysised it detail by detail but in summary: bigger surplus, a little more infrustructure, overall good effort Costello.

Also:
1) Is Beazley getting stupider and stupider these days?
2) Beazley's deputies seem to be doing most of the talking this time around. Is this his new stratergy or is he just getting slack?

If you check the income tax changes, the rich get the most benefit. The middle class, well, got ignored.

Welcome to America. :D

Difference between Australia and America; Australia can afford its tax cuts.

Also Australia doesn't claim to be the home of free trade, while placing huge protection on industries in swing seats.

I've blogged a few times about the budget in the past few days...

Here (http://binnsyshovel.blogspot.com/2005/05/rotting-dragon-leaves-no-clue-as-to.html) and here (http://binnsyshovel.blogspot.com/2005/05/make-do-with-your-first-wife-for-they.html). (you may have to scroll down a bit in the post to get to the budget section).

For what it's worth, the Coalition's budget is all we've got for the moment. The Opposition wants to stretch the tax cuts proposed by the government, and the Democrats want to poop all over all propositions by offering a flat rate tax cut for all. Not that any of the other minor parties can put in their two bobs' worth.

In the end, we have to live with the fact that it was the Coalition that won the last election, and that's what we've got for the time being.

Your right, at the end of the day, Howard will get his way.

Personally I believe that you shouldn't have to pay tax until earn the minimum wage. So I believe the minimum rate which is 15% now that kicks in at $6000 shouldn't kick in until $12000.

That would solve a lot of other legislation issues with so called welfare cheats, and income tests etc. Plus it's an ideological point of view, that if you can't earn enough money, you obviously aren't able to contribute to the society monetary wise.


Some people winge and complain that the 47% tax rate going up to $120,000 is pretty rich, but in all honest truth, if we are having such a dilemma finding skilled workers, having the highest tax rate pushed up that high might make it more attractive to get more skilled immigrants.

Well.. let's see, the tax cuts are minimal at best, but at least they ARE there... and of course the rich get more cuts, they pay more tax (duh)...

But alas, healthcare and education get the finger again...

Jezzail, how would pushing tax rates up attract migrants?

More likely they'd look elsewhere.

With tax cuts, everyone benefits because the money returned is spent on productive parts of the economy (whether as investment, or comsumption), rather than disappearing into the black hole of bureaucracy.

Labor are playing a parlour game of populism, and envy. They are not stretching the tax cut, they are merely playing to people's base instincts, something that constantly accuse the government of.

Labor's Pot ought to be quiet when it comes to the Coalition Kettle.

If you check the income tax changes, the rich get the most benefit. The middle class, well, got ignored.

The stupid thing is some items are hit by state taxes and then wham, the 10% GST on top of them.

I agree but people who earn $135000 p.a. pay $45000 tax p.a. They definitely deserve a tax cut. $80 a week means they pay $40000 tax p.a
That's still a crap load of tax. The rich pay an obscene amount of tax in australia.
Before you carry on with sarcasm, the man I know worked 60-70 hours a week for that $135000 before tax

Heir apparent to King John I of Australia, Prince Peter Costello has released Australia's budget today.

http://www.finance.gov.au/budget/

Any comments about it, Australians? :)

I might be getting a tax cut :)

Tax scale changes
http://www.budget.gov.au/2005-06/overview/html/overview_08.htm#TopOfPage

Prince Peter Costello?

Jezzail, how would pushing tax rates up attract migrants?


I think I've been misintepreted here.

I said pushing up the highest tax BRACKET, might help attract overseas skilled migrants.
Cause people don't want to pay high taxes.


Compared to most other OECD countries, our highest tax bracket kicks in rather early around $60,000, (however I believe I haven't got this number correct). This can be unattractive in trying to get the high demanding, high paying jobs that we as a country for some reason aren't able to obtain.

Lets take IT industry. Currently the market is saturated with a lot of IT people, except for the really skilled $70,000 plus jobs where there simply aren't enough very well skilled Java, C, SAP etc. cheap web designers are a dime a dozen.

So raising the highest tax rate, may attract the really high level specialised workers we are looking for.

I think they should increase the lower tax threshold to $10000 or above.


Either that or SPEND MORE ON EDUCATION!!!!!! I'm even willing to give up my 95c/wk tax cut for that!

"So raising the highest tax [Bracket]" I think you mean

Raising the rate will drive people away, raising the bracket will induce them in.