24 February 2012

Budget 2012 Analysis, Reflections and Disappointments

Summary

The Government significantly under-estimated corporate income tax in Budget 2011 and 2010.

The Government recognises, belatedly, that investment–grade gold is an actively traded financial asset like other financial instruments that are GST-exempt.

Is government funding for buses a good thing for the public transport operators?

The enhanced earned income relief benefits only one-third of the older economically active workers.

Special transfers to endowment funds and GST Voucher Fund overstate current expenditure.

Did the GST rate rise from 5 per cent to 7 per cent over the last decade?

Temporary GST offsets versus permanent reductions in income taxes.

The GST Voucher disadvantages those who fall between the cracks.

The GST rate can be reduced.