Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search

 

Australia Levies New Tax To Pay For Timor Troops

While Jenny and Helen argue over what increased taxes on higher income earners might do to the economy, Australia has simply gone out and done it - a tax to pay for peace. John Howard reports.

1.6 million Australians who earn more than A$50,000 a year will pay a new tax to help cover the ballooning cost of sending troops to East Timor.

For those earning between $50,001 and $100,000 a year, the government will increase the 1.5 percent Medicare levy to 2 percent which will effectively reduce their coming GST tax cut by $5 to $10 a week for 12 months from July 1 next year.

Those earning more than $100,000 will pay an extra 1 percent or at least $20 a week.

For example, someone earning $60,000 a year will have their GST tax cut of $61.80 reduced by $5.75, costing them $299 for the financial year.

Announcing details yesterday, Prime Minister John Howard said the one-off tax - which would raise $900 million - was needed to stop the 2000-01 budget from blowing out to a $500 million deficit.

"The necessary funds could not have been obtained without paring back in essential areas of social expenditure such as health, education and welfare to the needy. The government does not beleive that would be fair," he said.

The estimated 80 percent of the workforce who earn $50,000 and below will not be affected.

Australia's East Timor committment would cost taxpayers $3.7 billion over this and the next three financial years.

Labour and the Democrats have said they would support the new tax.

© Scoop Media

 
 
 
Top Scoops Headlines

 


Philip Temple: Hang On A Minute, Mate
Peter Dunne quietly omits some salient facts when arguing for retention of MMP’s coat-tailing provision that allows a party to add list seats if it wins one electorate and achieves more than 1% or so of the party vote... More>>


Cheap Grace And Climate Change: Australia And COP26

It was not for everybody, but the shock advertising tactics of the Australian comedian Dan Ilic made an appropriate point. Australia’s Prime Minister Scott Morrison, a famed coal hugger, has vacillated about whether to even go to the climate conference in Glasgow. Having himself turned the country’s prime ministerial office into an extended advertising agency, Ilic was speaking his language... More>>


Binoy Kampmark: Funeral Rites For COVID Zero
It was such a noble public health dream, even if rather hazy to begin with. Run down SARS-CoV-2. Suppress it. Crush it. Or just “flatten the curve”, which could have meant versions of all the above. This created a climate of numerical sensitivity: a few case infections here, a few cases there, would warrant immediate, sharp lockdowns, stay-at-home orders, the closure of all non-vital service outlets... More>>


Dunne Speaks: Labour's High Water Mark
If I were still a member of the Labour Party I would be feeling a little concerned after this week’s Colmar Brunton public opinion poll. Not because the poll suggested Labour is going to lose office any time soon – it did not – nor because it showed other parties doing better – they are not... More>>



Our Man In Washington: Morrison’s Tour Of Deception

It was startling and even shocking. Away from the thrust and cut of domestic politics, not to mention noisy discord within his government’s ranks, Australian Prime Minister Scott Morrison could breathe a sign of relief. Perhaps no one would notice in Washington that Australia remains prehistoric in approaching climate change relative to its counterparts... More>>



Binoy Kampmark: Melbourne Quake: Shaken, Not Stirred

It began just after a news interview. Time: a quarter past nine. Morning of September 22, and yet to take a sip from the brewed Turkish coffee, its light thin surface foam inviting. The Australian city of Melbourne in its sixth lockdown, its residents fatigued and ravaged by regulations. Rising COVID-19 numbers, seemingly inexorable... More>>