With the federal budget coming next month, there’s a lot of talk about taxes, much of it trying to make the point that taxing people more isn’t a lone solution to budget deficits.
Despite a large chunk of the previous budget’s measures tied up in a hostile Senate, the government wants everyone to know that taxes are not on the agenda.
The budget also has been adversely impacted by falling iron ore prices. This will mean a cut in government revenue of more than $30 billion over four years.
However, Prime Minister Tony Abbott said today: “Our goal is always to get taxes down; our constant objective is taxes that are lower, simpler and fairer.”
And when it comes to personal taxes, Australia does better than a lot of other developed nations, according to the OECD (Organisation for Economic Co-operation and Development).
The OECD today released a chart showing that Australia, among developed nations of the world, has the sixth lowest taxes for a couple with two children.
It should be noted that the chart is based on the total tax burden — what it costs both employer and employee combined.
The OECD average tax for a couple with two children is 31.3%. The Australian rate is 25.6%, sixth behind Luxembourg, Ireland, Switzerland, Chile and New Zealand with the lowest.
Single Belgians without children pay the highest at 55.6%. For Australian singles it’s 27.7%
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