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Tax cuts for Aussie battlers
February 01, 2009 01:50am
http://www.news.com.au/heraldsun/story/0,21985,24991712-5005961,00.html
LOW-income earners will benefit from tax cuts expected to be announced by the federal government as part of a stimulus package to boost the economy.
Senior government sources say tax cuts for low-income earners are being considered as part of a widely anticipated stimulus package to be announced as early as this week, The Sunday Telegraph reports.
The targeted tax relief will be part of a mixed package of big infrastructure and "nation-building'' spending.
It will involve making strategic, but direct short-term cash injections into the economy.
Tax cut options available to the government include raising the low-income tax offset to $1500 and lifting the threshold at which the 30 per cent rate cuts to $37,000 at a cost of $2.75 billion.
Such a move would have more of an effect on the economy than across the board tax relief because low-income earners are more likely to spend any tax cuts immediately, the newspaper said. |
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