Liberal Party Treasurer Calls For Income Tax Reduction

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

21 August 2002

Speaking to the Australian Industry Group forum in Canberra this week, Federal Treasurer for the Liberal Party, Malcolm Turnbull urged the Howard government to reduce personal income taxes, arguing that the current rate puts Australia at a competitive disadvantage.

'The $60,000 threshold at which the top personal income rate [48.5%] is applied is far too low and that's a major competitive disadvantage. It's very hard to gainsay that.' the Australian Financial Review quoted Mr Turnbull as stating on Tuesday.

Pointing out that Australia's income taxes are higher, and kick in at lower levels than those in 'high tax' countries such as the United States and the UK, he added:

'There is a very real issue here for Australia, and the Howard government's previous attempts to lift that threshold from $60,000 to just $70,000 were frustrated by the Senate, despite a clear mandate to do so. How can we compete internationally when we have such high rates of personal income tax?'

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