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The Government must get its act together on taxation.

Its lack of credibility on tax has been further ex­ posed by the public disagreement between the Prime Minister and Treasurer over whether there will be tax cuts or tax rises in the next Budget.

The Prime Minister says that personal income tax should be cut in next year's budget,

The Treasurer says that taxes will have to rise to make up for the defeat of the government's retrospective and penal "bottom of the harbour" tax bill.

Either Mr Hawke or Mr Keating is misleading the Australian people.

Neither has a good record on this subject.

Mr Hawke, who has broken his pre-election promise of tax cuts to 6 million Australians this year, is once again resorting to the pre-election tax promise, this time before the Mor^txm;■by-dleCtdxxn.

Mr Keating's threat of higher taxes to make up this year's 60 million dollars in lost revenue from the "bottom of the harbour" legislation is in stark contrast to his response to his own 80 million dollar mistakes in

the last budget, when he felt no need to make this amount up in higher taxes. He has very a very selective view of the need to restore lost revenue.

The test of whether Mr Keating is right or whether Mr Hawke is correct in asserting that the defeat of the "bottom of the harbour" law did not mean that the government was going to impose new taxes, is

clearly a political one, not an economic one.

27 October 1983