Senate debates

Tuesday, 15 August 2006

Questions without Notice

Economy

2:25 pm

Photo of Andrew MurrayAndrew Murray (WA, Australian Democrats) Share this | Hansard source

My question is to the Minister for Finance and Administration, representing the Treasurer. Has the government noted that chapters 1 and 6 of the recently released OECD Economic Survey of Australia 2006 still recommend tax reform for Australia? In particular, did the minister note that the OECD survey said that labour force participation, particularly for women, would be lifted by reducing low-wage traps, which are high in international comparison, by reducing the lowest income tax rate or raising the threshold at which income tax is first paid? Did the minister note that the report said that the focus of any future tax cuts should switch to reducing high effective marginal tax rates faced by many households in the lower income deciles? Does the government accept these OECD recommendations are worth considering for next year’s budget? Or is the government ruling out now any further help for Australia’s low-income earners?

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