FED: Give workers tax cut now, says George

AAP General News (Australia)
04-19-1999
FED: Give workers tax cut now, says George

CANBERRA, April 19 AAP - Workers should be given tax cuts ahead of the introduction of the
federal government's proposed GST, ACTU President Jennie George said today.

She said bracket creep since 1993 had resulted in a hidden tax increase which would not be
compensated for under the tax changes.

"Ordinary Australian workers are entitled to an income tax cut now," Ms George said in a
statement.

"The hidden tax increase due to bracket creep is not a fair tax; it should be returned to
workers now, to establish a fair starting point for assessing any GST compensation package."

She said the income tax cuts proposed as part of the GST package would not compensate for
the amount of bracket creep from ordinary inflation.

The latest Australian Taxation Office (ATO) report showed workers' tax bills increased by
almost eight per cent in 1996/97, Ms George said.

"For workers earning $28,000 to around $50,000 a year, the price effects of the new GST
consumption tax will not be compensated by the left-over tax cuts once allowance is made for
bracket creep," she said.

The government intends to cut income tax rates as compensation for the introduction of the
10 per cent GST.

AAP rmm/mfh/kr

KEYWORD: TAX ACTU

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