ZT
Tax cuts tipped in stimulus package
Sunday, February 01, 2009 » 06:17am
Tax cuts are expected to be announced by the federal government as part of a stimulus package.
Low-income earners will benefit from tax cuts expected to be announced by the federal government as part of a stimulus package to boost the economy.
Senior government sources say tax cuts for low-income earners are being considered as part of a widely anticipated stimulus package to be announced as early as this week, the Sunday Telegraph reports.
The targeted tax relief will be part of a mixed package of big infrastructure and 'nation-building' spending.
It will involve making strategic, but direct short-term cash injections into the economy.
Tax cut options available to the government include raising the low-income tax offset to $1500 and lifting the threshold at which the 30 per cent rate cuts to $37,000 at a cost of $2.75 billion.
Such a move would have more of an effect on the economy than across the board tax relief because low-income earners are more likely to spend any tax cuts immediately, the newspaper said.