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ExpatSingapore Message Board 25 May 2012, 8:45:50 am *
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Author Topic: Australia: A$6 per week saving  (Read 363 times)
Glenelg

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« on: 12 May 2005, 0:09:00 am »

I am surprised that Kim Beazley criticized the new tax cuts saying it is unfair because a majority of Aussies save A$6 pw (earning A$25k to A$55K) while the PM and other high-income earners save A$65 pw (a meager $3,380 pa). He is planning to block the cuts in the Senate. Didn’t he know that the business community in Australia had been proposing a lower top tax rate from current 47% to 30% which is the current corporate income tax so that the country can attract high-income earners and give more incentives for people to work. This could not possibly be done if Kim Beazley and people like him take this stance. There is no ways that those earning A$25K-55k can be "even" to higher income earners in term of absolute $ when more and more new tax cuts kick in. Australia is among the most heavily taxed nations in the world, 47% rate is applied for any dollar above A$63,000.

Look at what Singapore is doing. I think that Kim Beazley has little business sense or he is disparately attempting to improve Labour’s popularity, something they have got enough in the last 10 years.

[This message has been edited by Glenelg (edited 14-05-2005).]

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« on: 12 May 2005, 0:09:00 am »



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Joseph27
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« Reply #1 on: 12 May 2005, 16:27:00 pm »

My comments on the budget - a reply to an article that praised its merits.

You say that this is Costello’s 10th and most important budget and I would certainly agree with that statement however I vary when it comes to evaluating its effectiveness.  Simply put I see the budget as little more than another ambivalent piece of political pragmatism by the government; instead of embarking on generational change we continue down John Howard’s steady as she goes path.

I for one am hoping that this is part of Howard’s last stand until next Jan when hopefully a new leader can stand up to the plate (forgive the baseball analogy – I guess I have been out of Aus too long).  John Howard will go down in the history books as one of Australia’s best prime ministers but I put it to you that if Keating had somehow managed to sneak in again in 96, Australia would have enjoyed the same levels of prosperity and he too would have been remembered more fondly.  

Sure we can slap ourselves on the back and say job well done Howard, but credit where credit is due, Hawke and Keating introduced the changes that Fraser and Howard were too small to effect, and they carried Australia into the 21st century.  They fixed the rudders and Howard simply steered Australia through and alas here we are again watching Howard let another chance at generation change slip by.  Don’t get me wrong I admire John Howard and would consider him a role model in facing adversity and getting up back but starry eyes don’t get disguise the economic and political realities that Australia faces.

Tax rates have dropped but not enough at the higher levels to affect real change, the people you want to keep in Australia know that they can get away with lower taxes elsewhere; the incentives to stay don’t exist.  Giving an average Australia worker an extra $6 a week is on the other hand also pretty meaningless.  I have family in your electorate – ask them what its like to go shopping and see the prices constantly increase to a point where an extra $6 a week will have been eaten up multiple times by next budget.  

This budget does very little in the way of long term economic restructuring and instead throws a few band aids on several areas; selling Telstra to top up an under funded superannuation a classic case.  Having money in the bank is great but when we use it more wisely we become far richer.  Insofar as the restructuring of welfare goes, the budget doesn’t go far enough; at present our welfare bill is feeding an army 2.6 million Australians, many of whom need incentives to work.  Here’s an idea, instead of paying a 45 year old guy $500 a week to fill in a form once a fortnight, give an employer who needs an apprentice an incentive to hire him.  Sure apprentice wages are low in the first 2 years, help top them up, $150 wage, $350 government payment – to reduce as his/her income increases.  

Australians’ are still living in a paradise compared to their neighbors but it takes hard work to maintain it. One gets the feeling that the next three years will be extremely colorful on the Australian political landscape with an almost certain leadership change / challenge along with a very uncertain world economy.  I hope John Howard’s successor has the political will and courage to help shape Australia’s future by fully utilizing the great opportunity that the last election gave.

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Now as for Beazley - the guy is a friggen moron - more of a populist than Howard with double his body size and five times his charisma but a fifth of his tikka.  Whilst I hope the Libs will change and drive Australia forward - you kind of know that Beazley would never be a reforming in the spirit of Hawke, Keating.  I think Latham would have been interesting but luckily we didnt get that experience -  possibly would have been Australia's first PM to have a mental breakdown

[This message has been edited by Joseph27 (edited 12-05-2005).]

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"truth is a group of metaphors, metonyms, and anthropomorphisms; a sum of human relation which is poetically and rhetorically intensified, metamorphosed and adored so that after a long time it is then codified in the binding canon."
marriedguy
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« Reply #2 on: 13 May 2005, 10:32:00 am »

Ho hum, six bucks wouldnt even get you a pack of smokes.
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Glenelg

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« Reply #3 on: 14 May 2005, 15:49:00 pm »

Joseph27, your reply is very interesting. Thanks for sharing your view. I agree Keating is super great.

Re the tax cut I welcome it. High tax is sure to keep jobs for Australians but the big picture is to get more talents into the country. Singapore has been a remarkable example. Costs of having expats in Australian is a great deterrent. Australia is getting more skilled migrants but most of them have not got a job upon arrivals. Why not lowering tax to get high income earners that can contribute immedidately, supporting the aging population and rising health care costs.

The $6pw saving is insignificant but I guess it it the first step to make Australian labour market stronger. It is more in the long term, the saving seems not much but the scheme will shave billions off the budget. It will take a long time to get the level of US's and UK's tax rate without disrupting the system.

[This message has been edited by Glenelg (edited 14-05-2005).]

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