Fed: Global economy to dictate second stage of tax reform: Rudd

AAP General News (Australia)
04-21-2008
Fed: Global economy to dictate second stage of tax reform: Rudd

MELBOURNE, April 21 AAP - Labor's $31 billion package of tax cuts will be delivered
in next month's federal budget, Prime Minister Kevin Rudd says.

But a promised second stage of tax reforms would depend on future economic conditions, he warned.

During last year's election campaign, Labor promised to reduce the number of income
tax brackets to three, set at 15, 30 and 40 per cent.

In an interview on ABC television tonight, Mr Rudd guaranteed the tax cuts would be
included in the budget, but he said economic factors would determine if tax brackets would
be adjusted.

"(The next stage of reforms) was always stated in terms of the conditionality being
a national and global economic circumstances. We were up front about that at the time,"

Mr Rudd said.

"What now we are about to implement is much-needed tax reform and tax changes for low-to-middle
income earners.

"There's $31 billion worth of those tax cuts coming up through this budget.

"In terms of second stage, second wave, of course that lies further down the track
and we would not dare expect to lodge that up front in these budget papers."

Mr Rudd said the government would need to work hard to achieve a budget surplus of
at least 1.5 per cent of gross domestic product (GDP), as promised.

"Well, I said very clearly in January this year that was our target, that's our aim
and that's the one we have been working to internally and it's been frankly hard work
because of the impact which that has on expenditure," he said,

"We're still labouring in the field, cabinet was working on this again today, and we
have still got a little while to go."

AAP jrd/goc/mn

KEYWORD: BUDGET08 RUDD

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