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Costello's Budget fails Gorton families.



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Costello's Budget fails Gorton families

MEDIA RELEASE 12 May 2005

The Howard Government has once again sold families short in Gorton, Brendan O'Connor said today. Eight out of ten Australian taxpayers, including those on an average income, will only receive a sandwich-and-milkshake tax cut of $6 a week.

"I wholeheartedly support tax reform, but this package of tax cuts is unbalanced and unfair," the Member for Gorton said today.

"While an average income earner in Gorton will get a cut of $6 a week, a person earning $125,000pa will gain an additional tax cut of $65 a week. Since the GST was introduced, average income earners have had a tax cut of just $10 a week, while taxpayers on $125,000pa will have cuts amounting to $119 a week.

"The small tax cuts for struggling families in Gorton would be all but erased if there were further increases in home loan interest rates. Average families are already paying up to $339 per month extra because of the Howard Government's broken election promises.

"Parts of this Budget are Robin Hood in reverse, with the great bulk of workers receiving only miniscule relief - $6 per week for 8 out of 10 taxpayers - cold comfort for those already hit by the March interest rate rise," Mr O'Connor said.

"By delivering for the top end of town, Treasurer Costello is trying to build support in the Liberal Party at the expense of 8 out of 10 Australian taxpayers."

The Costello budget has failed to meet a number of crucial tests:

Will more Australians be trained now or will we import more skills?

Is there a plan for rebuilding Australia’s infrastructure?

Does it provide some real incentive and reward hard work?

"This budget makes life harder for the most vulnerable people in Gorton: sole parents and the disabled. The Howard Government has failed to deliver a plan that helps them move from welfare to work.

"The Budget also fails to respond to the skills and infrastructure challenges holding back the Australian economy. This budget is aimed at the wealthy at the expense of the less well off."