Vic: Costello says there's room for tax cuts

AAP General News (Australia)
12-26-2005
Vic: Costello says there's room for tax cuts

MELBOURNE, Dec 26 AAP - Australians may see tax cuts next year if the conditions are
right, federal Treasurer Peter Costello says.

Mr Costello told journalists in Melbourne today that for further tax reforms and tax
cuts to occur, interest rates must remain low.

"I think the time is right, consistent with low interest rates and that's the caveat
I put on that, it's very important that we keep interest rates low," Mr Costello said.

"We did it (tax cuts) in 2003 and again in 2004, and 2005, and if we can do it again
we'll do that as well."

Economists believe the time has never been better for further reform of the tax system,
with the economy strong.

In a report in today's Herald-Sun newspaper, AMP Capital chief economist, Shane Oliver,
said Australia's tax rates were too high and uncompetitive when compared with the rest
of the world.

"My feeling is that the marginal tax rates, particularly the top rate are too high,"

Dr Oliver told the newspaper.

"If you want to have a sustainable economy you have to give people encouragement to work hard."

But Mr Costello said the focus of tax cuts should not be on one group of income earners.

"I think the important thing is we keep the burden as low as possible for all people.

"I'm not just focusing on those on the top rate, I'm focusing on families, families
that are doing it hard, mums and dads that are servicing a mortgage, that are looking
after kids, that are raising kids, that are educating kids."

AAP sam/mon/jlw

KEYWORD: TAX

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