Tax Cuts in Australia

Peter Costello has just announced A$31.5 billion of tax cuts, on a A$10.6 billion surplus. Now that surplus in nominal terms is around the same size as NZ’s last year. As a % of GDP it is around one fifth the size of our surplus.

Plus Australia is investing in its own super fund, $10 billion on water supply, $741 million for climate change, an $8,000 rebate for solar panel installation, $5 billion for higher education, $1.6 billion for aged care.

And what has the Australian Labor Party said regarding the tax cuts? They have come out saying they support them.

The NZ Labour Party’s hatred of tax cuts is almost unique around the world. Left wing parties in the UK, Australia, US, Germany have all supported tax cuts. I doubt you could find a party anywhere in the world which would not have cut taxes by now, given a crown surplus which is around 20% of it’s income. And no $1 billion of cuts after $30 billion of surpluses is not enough.