Peter Costello Refutes High Tax Claims

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

28 May 2002

In a radio interview on Friday, Peter Costello denied opposition accusations that he is the highest taxing Treasurer in the history of the Commonwealth.

Recent reports in the Australian media have revealed that in the current financial year, the Australian tax take as a percentage of the total economy is the highest it has ever been.

Melbourne-based news service, theage.com also reported last week that the income tax take for individuals for 2001/02 is on target to reach a record $87.3 billion, despite $12 billion in cuts delivered with the introduction of the GST.

However, Mr Costello denied that the impact of the tax cuts introduced less than two years ago has lessened:

'They haven't gone,' he told Radio 3AW. 'It's absolutely nonsense to say they've gone.'

The Treasurer defended himself against high-taxing claims, arguing that income tax, at 17% of GDP, is probably around the historical average.

'The claim about being the highest taxing treasurer is rubbish,' he said last week. 'I see that put in newspapers from time to time, but it's wrong.'

Mr Costello refused to be drawn on whether the government was planning to introduce more tax cuts before the general election, merely commenting that: 'We are always looking at the tax system to make sure that it is as low as possible with sustainable social services.'

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