Do we need another tax cut? According to the latest promise from the Coalition, it seems to be a good thing for all Australians. No doubt that it is more likely the Coalitions need it more than the Australian tax payers, as November 24 the election day draws closer, but looking at the benefits -- everyone gets a raise in paypocket, and it is also a good incentive to encourage more people to stay at/join the workforce (and subsequently boosting the Australian economy). In 5 year time (2012), the top bracket will be at $180,000 and 40%, and you'll be pretty much tax free if you earn less than $15,000 per year!
|Current||2008 July||2009 July||2010 July|
|0||- 6,000||0%||0||- 6,000||0%||0||- 6,000||0%||0||- 6,000||0%|
|6,001||- 30,000||15%||6,001||- 34,000||15%||6,001||- 35,000||15%||6,001||- 37,000||15%|
|30,001||- 75,000||30%||34,001||- 80,000||30%||35,001||- 80,000||30%||37,001||- 80,000||30%|
|75,001||- 15,000||40%||80,001||- 180,000||40%||80,000||- 180,000||38%||80,000||- 180,000||37%|
Is it affordable? Sure, with huge surplus in federal budget -- why not use some of that to
buy votes reward the hard working fair dinkum Aussies?! There is no better way to spend the budget surplus on tax cuts! Everyone can feel richer!
Unfortunately "better of" is usually a relative term, and the only thing that seems to keep the inflation low is the cheap imported Chinese-made goods. On the other hand, there are many things that I would love the government to fix -- roads, hospitals, schools, etc -- and I do hope they have not been taken out from the budget to cater for tax cuts.
We'll see what Kevin07 has under his sleeves. Probably a "Me too"...
Who will you vote for on November 24?