Fed: Murray says real tax reform very expensive

AAP General News (Australia)
08-29-2005
Fed: Murray says real tax reform very expensive

CANBERRA, Aug 29 AAP - The Australian Democrats have called for more drastic reform
of the country's tax system than the tax cuts proposed by the federal government.

However, Democrats tax spokesman Andrew Murray said it could cost tens of billions
over the course of a tax cycle to do the job properly.

"If you are going to index the rates, if you are going to broaden the base, if you
are going to raise tax-free thresholds significantly and if you are going to adjust our
rates to make us internationally competitive that needs something much bolder and much
more dramatic that that which is on the table at present," he told ABC radio.

"I believe that we need to be able to raise the tax-free threshold to $20,000 at least.

Indexing the rates is another. Merely indexing the tax-free threshold would cost you $1.65
billion a year so it's expensive."

Senator Murray said tax reform was very expensive but by just fiddling at the margins
it would never go away as a topic.

"I would suspect if you are really tackle this area well, you are looking at many tens
of billions over a budgetary cycle," he said.

AAP mb/jt/de

KEYWORD: TAX DEMOCRATS

2005 AAP Information Services Pty Limited (AAP) or its Licensors.