Tax Cuts Not Enough For Families

Date: 14 May 2003

The tax cuts in tonight's federal budget will not compensate working families for increases in the cost of health, education and childcare or make up for the effect of bracket creep, the ACTU said.

ACTU President Sharan Burrow said most working Australians (earning between $30,000 and $50,000) will receive only $4 a week in tax cuts, while high-income earners will receive three times as much. Those earning less than $20,000 will receive $1.60.

"The Howard Government is handing back a miserly $4 a week after reaping more than $14 billion in bracket creep and productivity growth. Meanwhile, it is forcing families to pay more for health, education and childcare," Ms Burrow said.

The ACTU said the social deficit after eight years of Costello budgets includes:

· $7.5 billion in extra taxes through bracket creep (2000-2004), with less than half being returned through tax cuts;

· $7 billion growth dividend to the government from increased productivity of at least 0.5% per year since 1996;

· new Medicare co-payments of up to $20 for every GP visit;

· up to 30% increase in already unaffordable higher education fees;

· shortages of 30,000 childcare places with average families paying 18% of income for care;

· 30% increase in the cost of essential medicines under PBS changes;

· 12 to 18 month waiting lists in public hospitals and two years for public dental services;

· 200,000 people on waiting lists for public housing; and

· 365,000 Australians from working households living in poverty.

"This budget massively increases the financial burden on working families. It undermines basic social services that Australians pay taxes for - including fair access to quality healthcare, education and childcare. While average employees are struggling to cover essential expenses, the big end of town is doing better than ever."

"The government says a $200 million paid maternity leave scheme for all working women is too expensive, but gives hundreds of millions of dollars in tax breaks to foreign multinational companies. After seven years of sustained economic growth and record productivity improvements, the Howard Government has failed to make Australia a fairer country.

"The eighth Costello budget will leave a massive social deficit causing greater inequality and lack of opportunity for working people," Ms Burrow said.

For further information

Contact:	Jeremy Vermeesch
Union:	Labor Council of NSW
Contact Mobile:	0408 513 849
Email:	jeremy@actu.asn.au

LaborNET is proudly created, designed and programmed
by Social Change Online for the Labor Council of NSW
[Credits] [Site Matters]