Page 3505 - Week 11 - Thursday, 15 November 2007
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income tax rates in Australia if it is re-elected to government on 24 November. This promise continues the Australian government’s previous action in cutting the rates of income tax in its current term of government. Indeed, the Australian government has backed up its philosophy of responsible economic management throughout its term by keeping an eagle eye on tax rates and reducing them where the nation’s financial capacity makes that possible. This latest announcement of further tax cuts continues the Australian government’s record of allowing the people of Australia to control their own destiny and become self-sufficient.
On 1 July 2008 the Australian government will cut taxes by increasing the tax-free threshold and the thresholds for other tax brackets. The tax-free threshold will increase from $11,000 to $14,000. The threshold for the 30 per cent tax rate will increase from $30,000 per annum income to $34,000. The threshold for the second-highest marginal tax rate will increase to $80,000 and the threshold for the highest marginal rate will increase to $180,000.
The Australian government has committed to reducing taxes once again on 1 July 2009, again increasing the tax-free threshold and reducing the tax rates. The tax-free threshold will increase to $15,000 and the threshold for the 30 per cent tax rate will increase to $35,000. The second-highest marginal tax rate will be cut to 38 per cent and the highest marginal tax rate will be cut to 43 per cent.
And that is not the end of the good news, because the Australian government have committed to further tax reductions on 1 July 2010 and again they plan to increase the tax-free threshold and reduce the tax rates. The threshold will increase to $16,000 and the threshold for the 30 per cent tax rate will go up to a mighty $37,000. The second-highest marginal rate will be cut further to 37 per cent and the highest marginal rate will be cut further to 42 per cent, making Australia a globally competitive nation in relation to personal income tax rates by any measure.
In addition, we have heard in recent days a further announcement by the Australian government which will allow people to establish tax-free savings accounts to buy their first home and this builds on the philosophy of the Howard government to reduce the burden of taxation on the Australian people and allow them to become autonomous members of Australian society.
These tax cuts will provide relief for Australian workers and their families and will certainly promote strong economic growth. The tax cuts will allow workers across the income spectrum to keep more of their earnings, a position that we advocate also at the territory level—that we need to return to the people some of the taxes that they have had to hand up to government in more difficult times.
By enhancing Australia’s tax competitiveness compared to other countries it will also make Australia a more attractive destination for skilled workers around the world. On top of the already stellar economic record of the Australian government, particularly in the area of job creation, an area that I would think is near and dear to you, Mr Temporary Deputy Speaker Gentleman, these tax cuts are projected to create 65,000 new jobs over the medium term alone—65,000 new jobs thanks to the tax reforms and other reforms being pursued by the Howard government. This growth will augment the impressive record of job creation since the Australian government’s workplace reforms.
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