Ben Oquist

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‘The next election and the next Senate will have to make some of the biggest decisions on the direction of taxation policy in a generation’ Photograph: Mick Tsikas/AAP

Australia is about to have another big debate about tax. The government is building its new tax campaign, targeting Labor’s moves on negative gearing, capital gains, franking credits and higher income tax rates at the top end. Then there will be the duelling income tax cut plans for low and middle earners from both sides in 2019.

A budget surplus on the eve of an election campaign, with the government well behind in the polls, is a dangerous thing. That is even more so if it is a surplus built on temporary commodity price improvements. An improved budget bottom line can give irresponsible governments an excuse to spend billions on permanent tax cuts which, as history has shown, are almost impossible to unwind once in.…  Seguir leyendo »