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Interview with Rena Sarumpaet, SBS
SARUMPAET:
Peter there is a lot largesse in this budget but there is no tax cut for anyone less on than $50,000 a year.
Why are the tax cuts directed at the most well off.
TREASURER:
Well, I don’t think I would say that people on $55,000 are well off. I think they’re middle income earners and I think they don’t deserve to be on top marginal tax rates.
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If you compare Australia’s tax system with those overseas, their top thresholds cut in at much higher levels, generally speaking, than ours and I think that you shouldn’t have to go on the top tax threshold in Australia until you hit $80,000.
That is about twice average earnings. I don’t think people on average earnings should be near those top rates.
SARUMPAET:
Haven’t low income Australians without children though, also suffered as inflation has put them into higher tax brackets?
TREASURER:
Well, we have now one bracket at 30 cents between $21,600 and $52,000, so those people are