Fairest Budget for many years

Fairest Budget for many years

Personal tax reductions across the board for all tax brackets and the cut to the company tax rate, along with the increase in GST makes this the fairest Budget in over a decade, says Alasdair Thompson, chief executive of the Employers & Manufacturers Association.

"Business will welcome the tax rebalancing being put in place in the Budget as it will be much fairer," Mr Thompson said.

"But the level of overseas debt is forecast to run up to 100 per cent of GDP, with the government deficit rising to $10.4 billion and its payments totaling $70.7 billion and revenue forecast at $60.3 billion,"

"The forecast growth in social welfare costs means all income tax paid is in effect spent just on funding social welfare.

"This underlines the need for ongoing effort in the public service to increase efficiency and productivity.

"Getting the company tax rate down to 28 cents next year will be two years ahead of Australia and help restore competitiveness lost by the ETS on July 1st this year.

"The reduction in the top personal tax rate to 33 cents will be a major benefit to thousands of small businesses who pay that rate.

The funding for science and R&D is a good start towards building the economy.

"The ability of high income earners to shield income in lower tax paying trusts, and the removal of depreciation on buildings, will fall heavily on higher income earners.

"But this is balanced against their income tax reductions and the lower company tax rate."

ENDS

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