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Home / New Zealand

Australian tax cuts spell trouble for NZ, say Nats

10 May, 2006 12:51 AM2 mins to read

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The Australian Government's tax-cutting budget means more bad news for New Zealand, National Party leader Don Brash said today.

Across-the-board tax cuts are the centrepiece of last night's Australian budget and Dr Brash described the tax cuts as "the latest twist" in Australia's raid on New Zealand's best and brightest.

"The significance should not be overlooked...for New Zealand this means more competition for the skills that we need to keep our economy growing," he said.

"The Labour Government doesn't have the first clue about putting the right incentives into the economy to allow people to get ahead under their own steam."

Dr Brash said if National had won last September's election, April 1 this year would have marked the first tranche of the extensive tax cuts package it was offering.

"It was an opportunity missed...and instead we have seen the Australian Government yet again cut taxes," he said.

"Substantial tax cuts are most definitely on the agenda for the next National government."

Dr Brash said that by then New Zealand would have lost "thousands more of our best and brightest people across the Tasman".

ACT leader Rodney Hide said the tax gap between the two countries was widening.

"For every dollar Australians earn, politicians take 31 cents. The cost of central and local government to Kiwis is more than 38 cents in the dollar," he said.

"Kiwi workers are now further behind their Kangaroo cousins."

Mr Hide said the Australian Government recognised it was simple and fair to let workers keep more of their earnings.

"(Prime Minister) Helen Clark taxes hard, washes it through government departments and then makes people apply to get some back," he said.

"If ACT was writing this year's budget, it would include moves towards a flat tax and a Taxpayer Bill of Rights."

- NZPA

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