Gillard Uses Political Conference To Lay Out Future Plans

by Mary Swire, Tax-News.com, Hong Kong

06 December 2011

Australia’s Prime Minister Julia Gillard has outlined a plan to cuts taxes as part of efforts to boost economic growth and employment, at the embattled Labor Party's recent national conference.

Gillard told the conference that the government is planning to lower the tax burden next year, while increasing benefit and pension payments to individuals and investing in infrastructure.

"In 2012 we will cut taxes, lift family payments and lift the pension. In 2012, we will cut company tax, lift super and build infrastructure. In 2012 we will create tens of thousands of jobs," she said.

The Labor Party has lost much ground to the opposition coalition in recent months, not helped by Gillard's u-turn on the carbon tax, which was recently approved by parliament, and the new tax and spending pledges are doubtless an attempt to drum up electoral support for the government.

The government is, however, facing a budget squeeze as a result of a AUD20bn (USD20bn) fall in tax revenues, and it is looking to generate AUD11.5bn in savings this year.

The recent budget cuts proposed by the government were defended by Treasurer Wayne Swan, who pledged to deliver a AUD1.5bn surplus in 2012-13 after a AUD37.1bn deficit this financial year.

"Good strong public finances are the rock upon which you build your prosperity," Swan said.

The recent motions to expand the proposed 30% mining tax beyond coal and iron ore after mid-2013 and to introduce financial transactions tax were also defeated at the conference.

Recommended