John Howard Willing To Ease Tax For Top Rate Payers

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

03 November 2003

Australian Prime Minister John Howard has once again indicated that he is open to the idea of reducing the tax burden for those paying the top rate of income tax suggesting that the salary threshold at which the top rate becomes payable could be increased.

"I agree that the top rate comes in at too low a level of income," the Prime Minister explained in a recent radio interview, adding: "I've said this before and there's nothing new in the argument that it would be a good idea that as people's incomes rise that the top ceiling, which is now $62,500, be lifted."

In recent media reports, Mr Howard suggested that the threshold for the top rate of tax should be lifted to a level of $75,000, although he has repeatedly played down the immediate prospect of such a move by stressing that tax cuts will only be considered after the government’s spending commitments have been finalised.

"The philosophy of the government is that after you've allocated money for those things that you regard as requiring expenditure, and necessary expenditure...whatever is left over we believe should be returned through tax relief rather than spent on things that don't have as high a priority," the Prime minister commented.

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