"There's a strange idea afoot that because the Federal Government accounts currently show a reasonable cash surplus, we can indulge in another big round of tax cuts," he said yesterday.But surpluses of $8 billion or so a year were appropriate in good economic times. "If the Government pushes too hard on the accelerator by raising spending or reducing taxation, the Reserve Bank has to hit the brakes through monetary policy," he said.
In its new five-year Business Outlook, Access raises identical concerns, arguing that the economy needs low interest rates and a high budget surplus to speed its transition to export-led growth.
I think this one might actually happen. It's a significant tax break, for all (working) Australians, and because the money doesn't go straight into everyone's pocket, it shouldn't affect inflation. The Libs also blame the tax on Labor and so removing it makes them look good.
Unfortunately most of us will not see the money for decades so it's a hard sell.