Fed: Low-income earners expected to benefit from tax cuts

AAP General News (Australia)
02-01-2009
Fed: Low-income earners expected to benefit from tax cuts

Low-income earners will reportedly benefit from tax cuts .. expected to be announced
by the federal government as part of a stimulus package to boost the deteriorating economy.

News Limited papers report 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.

It'll be part of a mixed package of big infrastructure and "nation-building" spending.

Tax cut options available to the government include raising the low-income tax offset
to 15-hundred dollars .. and lifting the threshold at which the 30 per cent rate kicks
in to 37-thousand dollars.

The paper says it's believed the tax cuts .. costing 2.75 billion dollars .. will have
more of an effect on the economy than across the board tax relief .. because low-income
earners are more likely to spend them immediately.

AAP RTV krc/tm/fdf

KEYWORD: TAX (SYDNEY)

2009 AAP Information Services Pty Limited (AAP) or its Licensors.