Arab Today, arab today aussie treasurer signals income tax cuts as best way to stimulate slowing economy
Last Updated : GMT 06:47:27
Arab Today, arab today
Arab Today, arab today

Aussie Treasurer signals income tax cuts as best way to stimulate slowing economy

Arab Today, arab today

Arab Today, arab today Aussie Treasurer signals income tax cuts as best way to stimulate slowing economy

Australia's Treasurer Joe Hockey
Canberra - XINHUA

Australia's Treasurer Joe Hockey has flagged income tax cuts for the rich as the best way to strengthen the nation's slowing economy.

Joe Hockey told the Tax Institute and Chartered Accountants Australia and New Zealand on Monday that Australia's current taxation system is outdated and heavily reliant on Australia's top earners.

"Our existing taxation system is increasingly reducing the incentive for Australians to work harder," Hockey said on Monday.

"When our tax system represents a structural handbrake on growth, it is clearly time for change."

Hockey highlighted the problem of "bracket creep" as a driving factor behind the slowing economy, saying the issue would only get worse unless it is addressed.

Bracket creep occurs when inflation pushes lower income earners into higher tax brackets, meaning earners pay a higher level of income tax for no tangible change in disposable income.

Hockey said bracket creep would discourage everyday Australians to work harder.

"If people are left in those higher tax brackets ... the incentive for hard work is blunted -- and inflation means that without a real wage rise, people pay a higher and higher average tax rate each year," Hockey said.

"My view is that our tax system is holding us back from reaching our end goal of a stronger economy," he said.

Hockey told the conference that tax cuts for higher earners was the best way to relieve economic stress as it would encourage spending.

He said by freeing up more disposable income for the almost 50 percent of earners that will be in the second-highest tax bracket, Australia's economy would reap the benefits.

"In the next two year, without action, 300,000 Australians will move into the second-highest tax bracket," he said, adding "In 10 years, if tax cuts don't happen, almost half of all Australian tax payers will be in the top two tax brackets -- a jump from just 27 percent."

Australia's highest marginal tax rate is at 47 percent, higher than other developed nations such as Singapore and New Zealand, while the second highest bracket, which extends from 80,000 Australian dollars (58,000 U.S. dollars) up to 180,000 dollars ( 130,000 U.S. dollars), is at 37 percent.

Australia's average yearly income has crept up to 77,000 Australian dollars (56,000 U.S. dollars), and Hockey said if nothing was done within the next two years, more Australians would continue to be affected.

Hockey said the issue would be one of the main talking points for the coalition going into next year's federal election.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today aussie treasurer signals income tax cuts as best way to stimulate slowing economy Arab Today, arab today aussie treasurer signals income tax cuts as best way to stimulate slowing economy

 



Arab Today, arab today
Arab Today, arab today Heart of Turkish Riviera is Alluring Seaside Escape

GMT 11:11 2017 Tuesday ,28 March

Heart of Turkish Riviera is Alluring Seaside Escape
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Russia, Iran ink economic deals

GMT 08:03 2017 Wednesday ,29 March

Russia, Iran ink economic deals
Arab Today, arab today Media host gives priority to problems of people

GMT 07:00 2017 Tuesday ,28 March

Media host gives priority to problems of people
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Disaster costs nearly double to $175bn

GMT 10:42 2017 Tuesday ,28 March

Disaster costs nearly double to $175bn
Arab Today, arab today Campaign fights sexual harassment in Egypt

GMT 11:14 2017 Tuesday ,28 March

Campaign fights sexual harassment in Egypt
Arab Today, arab today Trump moves to roll back Obama climate measures

GMT 08:39 2017 Wednesday ,29 March

Trump moves to roll back Obama climate measures
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Mercedes, VW recall million vehicles in China

GMT 09:16 2017 Wednesday ,29 March

Mercedes, VW recall million vehicles in China
Arab Today, arab today Uber grounds self-driving cars

GMT 09:11 2017 Monday ,27 March

Uber grounds self-driving cars
Arab Today, arab today Trump poised to roll back climate protections

GMT 09:28 2017 Tuesday ,28 March

Trump poised to roll back climate protections

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 11:10 2017 Monday ,27 March

Trump to roll back Obama clean power plan

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 11:55 2017 Wednesday ,29 March

Need ‘gymspiration?’ The top fun fitness bloggers

GMT 09:02 2017 Thursday ,23 March

Laptop ban sparks ire

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 05:17 2017 Wednesday ,29 March

Samsung to sell refurbished Galaxy Note 7s

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday