Howard Hints At Possible Tax Cuts

by Mary Swire, for LawAndTax-News.com, Hong Kong

16 March 2005

Apparently contradicting remarks made by Australian Finance Minister, Nick Minchin at the weekend, Australian Prime Minister, John Howard hinted in a radio interview on Tuesday that the government has not ruled out the inclusion of tax cuts in its May Budget.

Following several recent calls from politicians and accountants to reform the current tax system, and in particular to close the gulf between the top marginal tax rate and the corporate tax rate, Mr Howard told Brisbane radio listeners that:

"Everybody wants lower tax including me, including the treasurer."

He went on to state that if essential spending has been provided for, and the Budget surplus is strong enough, tax relief will be considered.

However, the Prime Minister qualified this remark by announcing that:

"It's impossible at the moment for me or for the treasurer to say if that is going to be possible in the next Budget. I can only state the principle. That was the principle last year, it was the principle the previous year, is is the principle now."

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