Further tax cuts on agenda

As the Federal Government reels from the latest warning signs that Australia is heading into a deep recession, it might be necessary to introduce new tax cuts in a bid to prop up the economy.

In his speech the Prime Minister appealed to bosses to do everything to protect their workers from losing their jobs and for workers not to ask for pay rises.

The Prime Minister's open suggestions to the Australian people may seem brutal, but in the light of the economic circumstances appears to be honest and realistic. He further stated that the global economic crisis would get worse before it got better.

He further implied that the Government was preparing to announce further initiatives to add to the $36 billion already made available to reinforce the economy.

Treasurer Wayne Swan who further fuelled tax cut speculation did not indicate however, whether he was planning the tax cuts to personal or business taxes.

Mr. Rudd went on further to say that protection of jobs had to be a top priority, and that both employers and workers had a responsibility towards each other.

Employers would do well to remember that if they protect their workers during these tough times, these workers would serve them well when times improve again.

While traveling around the country, Mr. Rudd said that he sensed a steadiness amongst the people and awareness that times were tough, but that if everyone were to stick together we would rise above the challenge.

Despite the fact that Access Economics announced earlier this week that Australia was heading into recession state Treasurer John Lenders stated earlier this week that he was standing by his previous forecast of a 1.5 per cent economic growth this year.

Saul Eslake ANZ's chief economist expected Australia's Reserve Bank to cut its cash interest rate to an all - time low of 3 per cent in a bid to prevent an Australian recession.

Published on January 1-nd, 2009 in Financial Planning
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

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