P.M. BRIEFING : Oil Fuels Australian Tax Cuts
Treasurer Paul Keating gave Australians a $760-million tax cut today, financed mainly by increased revenue from higher oil prices. Keating, calling his deal a “golden opportunity” to trim inflation, cut taxes for salaried employees by an average $2.24 a week.
The deal, combined with a previous wage pact for Australia’s 7.9 million payroll workers, will result in total tax cuts of $8.21 a week beginning Jan. 1. In addition, a $9.12 a week wage increase takes effect in mid-May.
The Australian Council of Trade Unions has approved the deal, which breaks the traditional cycle under which employers have raised wages to match increases in inflation.
Keating said that instead of having employers raise their wage bills and fuel inflation with price increases, the government would “pay” workers by cutting taxes.
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