The Turnbull government has succeeded in obtaining a welcome reduction in personal income taxes. But the estimated reduction in total tax levels is less than might be imagined from the media exchanges. This is important because, as stated in Budget Paper No.1 for 2018-19, “it is important that the personal income tax system does not act as a disincentive for those taking on additional work or seeking advancement”. Also that the “cap on the overall tax burden… “is consistent with the long term average of 23.9 per cent of GDP” which the government has set.
My Commentary on Sunday April 1 covered many issues but, from a domestic political viewpoint, the most important was Energy Policy. Attached to that Commentary was my draft letter to The Australian about the Turnbull government’s National Energy Guarantee (NEG) that appeared to be the central component but which had not yet been explained to the electorate despite details having been promised some months ago. The draft letter also referred to the recent analysis published by three expert US climate scientists which, if accepted, would mean the abandonment of NEG.