Swan Can't Rule Out Tax Cut Changes

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

06 May 2009

Australia's Federal Treasurer Wayne Swan has announced that he may not be able to include all of the promised tax cuts within the forthcoming budget.

Speaking just days before the May 12 budget is due to be unveiled, Mr Swan revealed that it is increasingly likely he will have to scrap a plan to implement tax concessions for the country's high-income earners.

The tax cut - which was promised to the wealthy in the run-up to the last election - is due to come into effect in July of this year, but Swan believes that, realistically, there is simply not enough revenue available to sustain such a measure during the current recession.

Explaining the decision to scrap the tax cut, Swan stated:

"It'll be unpopular but we'll do the right thing by the national economic interest."

"We will have to rearrange our priorities to make sure we can meet our commitments and also at the same time put in place a medium term strategy to make sure that we've got fiscal sustainability," he added, continuing:

"The government will take the unpopular decisions in the interests of... supporting jobs, stimulating our economy, putting in place the long term investments for the future so we can maximize opportunities when the world economy recovers," he finished.

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