Tax cuts and Budget surplus - the Australian way

[trev]

Last nights budget included major tax cuts which comes on top of large tax cuts in last years budget, yet it still leaves the gov't with one of the largest projected surpluses on record. In the space of 3 years the highest rate of marginal tax, 47% will cut in at $125 000, up from the previous $60 000, and other tax rates have been cut, or had their thresholds lifted as well. The net debt of the Australia government is now close to zero after a series of budget surpluses, a situation far different from USA and most European countries.
The gov't claims this is the result of their superior economic management which has given the country about 15 years of continuous growth with no recession and the future looks just as promising.

[Bosh]

And all because of China...

[Case]

Re: Tax cuts and Budget surplus - the Australian way

Originally posted by trev
and the future looks just as promising.

Then you're not looking hard enough. The hangover from the housing bubble is really starting to bite, with retail sales being static and businesses expecting things to get worse. In addition, the commodities boom has probably peaked, with extra capacity now increasingly soaking up the demand from Asia.

All up, while a recession isn't on the cards, few economists believe Treasury's prediction of 3% growth.

Incidently, pumping money into the economy via tax cuts at the same time the Reserve Bank is trying to slow the economy through increasing interest rates strikes me as being less then good economic management...

[Skanky Burns]

That is why the tax cuts are spaced over two years, particularly those aimed at the more wealthy Australians.

Thankfully the poorer among us get something too. The first tax bracket after the $6000 tax-free threshhold has dropped from 17c / $ to 15c.

[chequita guevara]

Now to convince the wife to move to Oz.

[Dinner]

It sounds like Howard is actually a decent leader. To bad we have shrub.

[chequita guevara]

I imagine this has more to do with external factors than Howard's leadership.

[Dinner]

The improvements in the ecomy,yes. There is the matter of the government being responsible enough to live with in its means and to not give money to every special interest under the sun in order for an unpopular President to get reelected.

[pchang]

Australia is making it easier to immigrate there if you meet their skills criteria. Unfortunately for you, the partial list I saw did not include web designers. However, I'm sure you could probably qualify under another skill category.

[chequita guevara]

I'm sure I could. I've been a sys admin and a net admin, and I want to go into database programming. The trouble isn't getting in to Oz so much as getting the wife out of North America. Her mother is terrified of flying, especially since 9/11 and she's very attatched to her family.

I am too, but I ain't stayin' to be put in some concentration camp for Christian apostates.

[pchang]

She can always visit on a cargo ship. Many of them do have berths for passengers. It just takes a long time.

[chequita guevara]

Yeah, that wouldn't work either. Her mother is pretty much terified of everything. She won't even go on an expressway after she had an accident (clipped by another motorest and sent her spining around the Dan Ryan).

[pchang]

If that's the case, how does she visit now? There have been plenty of train and bus accidents in the news over the years.

[chequita guevara]

She doesn't. We visit her, but it's much easier being on the same continent.

This is woman logic we're discussing, okay.

[Skanky Burns]

Flying is safer than driving, plus Australia boasts the only major airline to not have an accident.

I'll probably bring this thread back on-topic tomorrow after I've had some sleep.
Some of the taxation rulings seem interesting.