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TREASURER

EMBARGO 1 . 0 0 f® ^ > . -

ADDRESS BY THE TREASURER, THE RT. HON. P H I L L I P LYNCH, M . P .

TO THE COOK FEDERAL ELECTORATE CONFERENCE D IN NE R, FRIDAY 2 6 AUGUST, 1 9 7 7 .

NO. 9 5

I AM DELIGHTED TO HAVE THE OPPORTUNITY TO ADDRESS T H IS MEETING ORGANIZED BY

THE COOK ELECTORATE CONFERENCE.

I WOULD L IK E F IR S T OF ALL TO MAKE SPECIAL MENTION OF DON DOB IE WHO IN V IT E D

ME HERE TO SPEAK TO YOU T H IS EVEN IN G .

AS YOU KNOW, DON HAS HAD A D IS T IN G U IS H E D PARLIAMENTARY RECORD AND I REFER NOT

ONLY TO H IS CONTRIBUTION TO THE McMAHON GOVERNMENT AS M IN IS T E R A S S IS T IN G THE

THEN PRIME M IN IS T E R , BUT ALSO TO THE WORK WHICH HE HAS DONE IN A VARIETY OF

WAYS FOR THE PRESENT A D M IN IS T R A T IO N .

I WAS, AS MANY OF YOU WOULD KNOW, PARTICULARLY PLEASED TO CAMPAIGN IN COOK

ON BEHALF OF DON DOB IE PRIOR TO THE 1975 ELECTION AND I WELCOME THE OCCASION

TO BE HERE A G A IN .

I PROPOSE, NOT S U R P R ISIN G LY , TO DEVOTE MOST OF MY REMARKS TODAY TO THE BUDGET

THAT I HANDED DOWN LAST WEEK.

TH IS YEAR'S BUDGET W IL L G IV E IMPETUS TO RECOVERY W IT H IN THE ECONOMY, AND I

BELIEVE THAT THE ECONOMIC FRAMEWORK SET FOR 1 9 7 7 / 7 8 PROVIDES GROUNDS FOR

O P T IM IS M AND A BASIS FOR GROWING CONFIDENCE.

TH IS YEAR WE HAVE STRUCK A BALANCE BETWEEN THE NEED FOR CONTINUING FIRMNESS

IN ECONOMIC MANAGEMENT AND THE OBLIG ATIO N WHICH WE HAVE TOWARDS THE POORER

SECTIONS OF THE COMMUNITY.

I T IS A REAL MEASURE OF ACHIEVEMENT THAT WE HAVE BEEN ABLE TO FRAME A BUDGET

THAT h a s t h e s e f e a t u r e s w h i l e , a t t h e s a m e t i m e, h o l d i n g i n p l a c e t h e e c o n o m i c

STRATEGY THAT HAS BEEN PURSUED SINCE THE END OF 1 9 7 5 .

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THE 1 9 7 7 / 7 8 BUDGET CAN BE SUMMED UP IN A FEW WORDS: I T IS TOUGH ON IN F LA T IO N

W ITHOUT BEING TOUGH ON PEOPLE BY TAKING AWAY OR REDUCING HEALTH OR WELFARE

B E N E F IT S . .

OVER THE NEXT TWELVE MONTHS THE AUSTRALIAN PUBLIC W IL L S E E : ­ ’ - · ~ \ ‘

. A FURTHER S I G N I F I C A N T REDUCTION IN THE RATE OF IN F L A T IO N ;

. REAL ECONOMIC GROWTH FOR THE SECOND YEAR IN A ROW;

. AN INCREASE IN NEW JOBS OF 2 PER CENT G IV IN G THE PROSPECT OF

SOME REDUCTION IN THE LEVEL OF UNEMPLOYMENT;

. A FURTHER INCREASE IN COMPANY P RO FITS AND IN BUSINESS INVESTMENT SPEN DING .

. AN IMPROVED PROSPECT FOR A SUSTAINABLE REDUCTION IN INTEREST RATES.

LAST Y E A R 'S BUDGET MET ITS OBJECTIVES IN ALMOST EVERY WAY AND I AM CONFIDENT

THAT T H I S Y E A R 'S BUDGET W IL L DO SO AS WELL.

THE H IG H L IG H T OF T H I S Y EA R 'S BUDGET IS WITHOUT ANY DOUBT THE NEW STANDARD RATE

INCOME TAX SYSTEM THAT W IL L COME INTO EFFECT ON 1 FEBRUARY NEXT AND I WANT TO

O U T L IN E THE VERY IMPORTANT ADVANTAGES THAT THE NEW SYSTEM W IL L CONFER ON ALL

SECTIONS OF THE AUSTRALIAN COMMUNITY.

THE MOST IMPORTANT B E N E F IT IS THAT THERE ARE TAX REDUCTIONS AT ALL LEVELS OF

TAXABLE INCOME.

THE TAKE-HOME PAY OF ALL WAGE AND SALARY EARNERS W IL L R IS E FROM 1 FEBRUARY

1 9 7 8 WHEN THE REFORMED SCALE W IL L BE FULLY REFLECTED IN THE PAY-A S-YO U -EAR N

INSTALMENT DEDUCTIONS.

THE B IGG EST PROPORTIONAL GAINERS ARE THOSE ON LOWER INCOMES AT THE BOTTOM OF

THE TAX SCALE.

IN A D D IT IO N , THE INCOMES OF ABOUT 2 2 5 , 0 0 0 TAXPAYERS, INCLUDING MANY PENSIONERS

W IT H SMALL P R IV A T E INCOMES, W IL L BE MADE NON-TAXABLE.

THUS THE NEW SYSTEM IS A S IG N I F I C A N T SOCIAL REFORM THAT IMPROVES THE P O S IT IO N

OF LOWER INCOME GROUPS IN THE COMMUNITY.

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THE F IR S T $ 3 , 7 5 0 Op EVERYONE'S INCOME W IL L BE TAX FREE.

SOME 9 0 PER CENT OF TAXPAYERS - ALL THOSE W ITH INCOMES UP TO $ 1 6 , 0 0 0 A

YEAR - W IL L PAY NO MORE THAN THE STANDARD MARGINAL RATE OF 32 PER C EN T.

T H IS W IL L ADD S I G N I F I C A N T L Y TO IN C E N T IV E .

THU S, A WORKER EARNING $ 1 0 , 0 0 0 PER ANNUM COULD EARN UP TO AN EXTRA $ 6 , 0 0 0

PER ANNUM W ITH O U T ANY INCREASE IN H IS MARGINAL RATE OF T A X .

T H IS MAKES I T MUCH MORE WORTHWHILE TO WORK OVERTIME OR TO BECOME Q U A L I F I E D

FOR A MORE S K IL L E D JO B .

ALMOST ALL F U L L - T IM E WORKERS W IL L HAVE LOWER MARGINAL TAX RATES THAN AT

PRESENT.

THERE W IL L BE A LARGE REDUCTION - FROM PER CENT DOWN TO 32 PER CENT IN

THE MARGINAL TAX RATE A PP LYIN G TO TAXPAYERS W ITH INCOMES BETWEEN $ 1 2 , 5 3 2 AND

$ 16, 000.

A TAXPAYER WITH A WHOLLY DEPENDENT SPOUSE W IL L BE ABLE TO EARN UP TO $ 5 Λ 8 Α

WITHOUT PAYING T A X , BECAUSE THE DEPENDENT SPOUSE REBATE (PRESENTLY $ 5 5 5 )

IS M A IN T A IN E D UNDER THE NEW SYSTEM.

THE SOLE PARENT AND OTHER DEPENDANT REBATES ARE ALSO M A IN T A IN E D UNDER THE

NEW SYSTEM,

NO TAXPAYER W ITH AN INCOME OF UP TO $ 1 6 , 0 0 0 W IL L PAY MORE THAN 2 5 PER CENT

OF H IS INCOME IN T A X .

REBATES FOR EXPENDITURE ON CONCESSIONAL ITEMS W IL L BE CALCULATED ON THE

STANDARD RATE OF 3 2 PER CENT RATHER THAN kO PER CENT AS P R E V IO U S L Y .

THE SAVINGS TO REVENUE FROM LOWERING T H IS RATE HAVE BEEN USED TO REDUCE THE

AMOUNT REQUIRED TO Q U A LIFY FOR A REBATE FROM $ 1 , 6 9 0 TO $ 1 , 5 9 0 .

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T H I S MEANS T H A T REBATES ARE B E I N G MADE A V A I L A B L E TO MORE T A X P A Y E R S , P A R T I C U L A R L Y

AS T H I S AMOUNT W I L L NOT BE IN D EX E D IN FUTURE Y E A R S .

T H E NEW SYS TEM I S S I M P L E R THAN ANY P R E V I O U S SYSTEM USED I N A U S T R A L I A .

A U S T R A L I A NOW HAS ONE OF THE MOST ADVANCED INCOME TA X SYSTEMS I N THE WORLD.

I N T R O D U C T I O N OF STANDARD RATE T A X A T I O N ON 1 FEBRUARY 1 9 7 8 OPENS THE WAY FOR

A GREATER DEGREE OF WAGE AND SALARY R E S T R A I N T . .

FOR E X A M P L E , A TAXPAYER ON AVERAGE E A R NI NG S W I L L , AS A R ES ULT OF THE NEW S Y S T E M ,

SAVE NEARL Y $ 3 . 0 0 PER WEEK I N TAX A FTE R 1 FEBRUARY N E X T .

FROM T H E P O I N T OF V I E W O F THE WAGE -E AR NE R THE $ 3 . 0 0 TAX CUT IS E Q U I V A L E N T TO

A WAGE I N C R E A S E OF $ 4 . 6 0 .

FROM T H E P O I N T OF V IE W OF IN D U S T R Y T H E TAX CUT,. W I T H I N THE FRAMEWORK OF A R E S P O N S I B L E

OV ERA LL B U D G E T , HAS NO IM PA C T ON COSTS AND HENCE DOES NOT LEAD TO H I G H E R P R I C E S .

I F ACCOUNT I S TAKEN OF B E N E F I T S THROUGH THE TAX I N D E X A T I O N OF 1 JU LY L A S T ,

AS WELL AS FROM THE NEW TAX S Y S T E M , T A K E -HO ME PAY FOR A TAX P AY E R ON AVERAGE

E A R N I N G S W I L L HAVE I N C R E A S E D BY 1 FEBRUARY 1 9 7 8 BY $ 6 . 6 0 PER WEEK, E Q U I V A L E N T

TO A BO UT A 5 P ER CENT WAGE I N D E X A T I O N I N C R E A S E .

TH E GOVERNMENT B E L I E V E S T H A T THE C O N C I L I A T I O N AND A R B I T R A T I O N C O M M IS S I O N MUST

PAY REGARD TO TH E TA X REFORMS T H A T HAVE A P P L I C A T I O N IN THE CURRENT F I N A N C I A L Y E A R .

THE SEV ERE IMBALANCE BETWEEN REAL WAGES AND P R O D U C T I V I T Y R E S U L T I N G FROM THE

1 9 7 4 WAGE E X P L O S I O N S T I L L REMAI NS AS A U S T R A L I A ' S MAJOR ECONOMIC P RO BL EM.

THE C O M M I S S I O N ' S C O N S I S T E N T REFUSAL TO A CC EP T THE GO V ERNM EN T'S ARGUMENTS

ABOUT TH E I M P A C T OF WAGE INCRE AS ES ON TH E RATE OF I N F L A T I O N AND ON THE LEVEL

OF UNEMPLOYMENT HAS BEEN Q U I T E CONTRARY TO THE IN T E R E S T S OF ECONOMIC REC OV ERY .

I T I S T I M E FOR TH E C O M M I S S I O N TO TAKE MORE ACCOUNT OF THE ECONOMIC CONSEQUENCES

OF· I T S D E T E R M I N A T I O N S AND LESS ACCOUNT OF WHAT I T SEES AS TH E I N D U S T R I A L

I M P L I C A T I O N S .

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SOME PEOPLE, INCLUDING OUR P O L IT I C A L OPPONENTS, HAVE, DURING THE PAST FEW

DAYS, SOUGHT TO DOWN-GRADE THE EXTENT OF THE BUDGET TAX REFORMS.

IN ORDER TO N A IL THAT KIND OF C R I T I C I S M I WANT TO REFER B R IE F L Y TO THE COST

OF THE TAX CHANGES.

INTRODUCTION OF THE NEW STANDARD-RATE SYSTEM ON 1 FEBRUARY, 1 9 7 8 , AND

A P P L IC A T IO N OF TAX IN D EX A TIO N FROM 1 JULY LAST MAKES A TOTAL OF $ 1 , 3 7 1 M IL L IO N

OF REDUCTIONS IN PERSONAL INCOME TAX R ECEIPTS IN THE CURRENT YEAR. .

NEXT YEAR - 1 9 7 8 / 7 9 - THE COST OF THE GOVERNMENT'S MEASURES W IL L TOTAL AN

ESTIMATED $ 1 , 8 5 7 M I L L I O N , OR $ 9 7 3 M I L L I O N MORE THAN WOULD HAVE BEEN THE

CASE I F NO CHANGES HAD BEEN MADE TO THE PERSONAL INCOME TAX SYSTEM IN THE

BUDGET WHICH I INTRODUCED LAST WEEK.

I WANT TO EMPHASISE TODAY THAT THE GOVERNMENT'S TAXATION REFORMS STAND IN

MARKED CONTRAST TO THE TAXATION P O L IC IE S PURSUED BY THE FORMER GOVERNMENT.

I T IS NOT MY PURPOSE TO BE NEGATIVE IN MY REMARKS TODAY.

HOWEVER, SOME PEOPLE HAVE SOUGHT TO C R I T I C I Z E THE PRESENT GOVERNMENT'S TAX

RECORD AND I I N V I T E THEM TO LOOK BACK AT WHAT HAPPENED DURING OUR PREDECESSORS'

TERM OF O F F IC E .

L ET ME SUMMARIZE THE MAIN POINTS - THE LABOR GOVERNMENT:-

. RAISED RECEIPTS FROM PERSONAL INCOME TAX BY A MASSIVE 8 9 PER CENT

DURING IT S F IR S T TWO YEARS IN O F F IC E .

. IMPOSED TAXATION ON AGE PENSIONS AND ABOLISHED THE INCOME TAX

AGE ALLOWANCE.

. IMPOSED A HUGE INCREASE OF AROUND $ 7 0 0 M IL L IO N IN IN D IR E C T TAXES

AND L E V IE S - EXCLUDING THE COAL EXPORT LEVY - . IN IT S LAST BUDGET.

. REFUSED TO INDEX PERSONAL INCOME T A X , IN S P IT E OF THE FACT THAT

THE IN Q U IR Y I T A P P O IN T E D , THE MATHEWS COMMITTEE, RECOMMENDED I T .

. A BOLISHED THE INVESTMENT ALLOWANCE FOR MANUFACTURING IN D U S T R IE S .

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... ABOLISHED THE INVESTMENT ALLOWANCE FOR PRIMARY PRODUCERS.

. INTRODUCED UNJUST AND DISCRIM INATORY FORMS OF TAXATION SUCH

AS A TAX ON SO-CALLED UNEARNED INCOME.

IN A D D IT IO N TO THESE THINGS IT NEEDS TO BE REMEMBERED THAT THE HAYDEN TAX

CHANGES - IN THE 1 9 7 5 / 7 6 BUDGET - WERE L IT T L E MORE THAN A FRAUD:-

. THEY INCREASED THE TAX ON MANY TAXPAYERS, INCLUDING THOSE ON

LOW INCOMES.

. THE SO-CALLED "GENERAL CONCESSIONAL REBATE" GAVE THE MISLEADING

IMPRESSION THAT TAXPAYERS WERE R EC EIVIN G A B EN EFIT THAT D ID

NOT IN R EA LITY E X I S T .

. THE FULL YEAR COST OF THE CHANGES WAS $ 2 0 5 M IL L IO N . BY CONTRAST

THE NEW TAX SYSTEM INTRODUCED BY THE PRESENT GOVERNMENT HAS A FULL

YEAR COST OF MORE THAN S IX TIMES THE COST OF THE HAYDEN CHANGES. .

THE LABOR PARTY IN OPPOSITION HAS NEVER PUBLISHED A COMPREHENSIVE TAXATION

PO LIC Y BUT SOME FEATURES OF OUR P O L IT IC A L OPPONENTS' T H IN K IN G STAND O U T :­

. THE INVESTMENT ALLOWANCE WOULD BE ABOLISHED UNDER A LABOR GOVERNMENT.

. ALL PEOPLE ON INCOMES OF ABOUT $ 1 5 , 0 0 0 PER ANNUM AND ABOVE WOULD

HAVE TO PAY MORE TAX.

. A LABOR GOVERNMENT WOULD COLLECT A D D ITIO N A L REVENUE BY OTHER MEANS,

INCLUDING IN D IR EC T TA XES. ·

. F IN A L L Y , AS MR. HAYDEN HAS MADE CLEAR, THERE IS NO GUARANTEE THAT

A LABOR GOVERNMENT WOULD APPLY ANY FORM OF TAX IN D EXA TIO N .

THERE ARE TWO OTHER FEATURES OF T H IS YEA R 'S BUDGET TO WHICH I WOULD LIK E

TO REFER.

F IR S T , OUR D EC IS IO N TO INCREASE THE RATE OF COMPANY TAX TO 46 PER CENT.

7

ONE OF THE IMPORTANT THEMES FLOWING THROUGH MY BUDGET SPEECH WAS THE NEED,

AS WE SEE I T , FOR A F A IR SHARING OF THE BURDENS IN T H I S COMMUNITY.

HAD WE L e f t t h e r a t e s o f c o m p a n y t a x u n c h a n g e d t h i s y e a r, r e c e i p t s f r o m c o m p a n i e s

WOULD HAVE ACTUALLY D E C L IN E D , LARGELY BECAUSE OF THE TAX CONCESSIONS WE GAVE

LAST YEAR.

THE A P P L IC A T IO N OF THOSE CONCESSIONS W IL L PRODUCE A VERY SUBSTANTIAL SAVING

IN THE TAX PAYABLE BY CORPORATE BUSINESS IN 1 9 7 7 / 7 8 OF THE ORDER OF $ 6 0 0 M IL L IO N

AT CURRENT TAX RATES.

EVEN WITH THE INCREASE IN THE RATE IT IS ESTIMATED THAT COMPANY TAX IN

TOTAL W IL L INCREASE BY ONLY 6 PER CENT IN 1 9 7 7 / 7 8 , OR AROUND HALF THE RATE

OF INCREASE IN 1 9 7 6 / 7 7 .

THE INCREASE ALSO NEEDS TO BE SEEN IN THE CONTEXT OF THE 2 3 PER CENT L I F T

IN OVERALL COMPANY PRO FITS LAST YEAR AND THE PROSPECTIVE FURTHER R IS E IN

THE CURRENT YEAR.

IN TERMS OF ECONOMIC IMPACT COMPANIES W IL L MEET THE TAX ADJUSTMENT T H I S YEAR

W IT H O U t PREJUDICE TO EXPANSION OF THE IR ACT I V I T l E S AS THE YEAR UNFOLDS.

ANOTHER PARTICULAR MATTER THAT I DO WANT-TO REFER TO IS THE SMALL BUSINESS

SECTOR.

WE ATTACH GREAT IMPORTANCE TO THE S P I R I T OF FREE ENTERPRISE WHICH SMALL

BUSINESS S YM BO LISES.

T H IS Y E A R 'S CHANGES TO PERSONAL INCOME TAX W IL L BE OF PARTICULAR B E N E F IT TO

THE OWNER/OPERATORS OF SMALL COMPANIES AND UNINCORPORATED E N T E R P R IS E S .

IN OTHER WORDS, ONE OF THE DELIBERATE A IM S OF THE NEW TAXATION SYSTEM IS

TO G IV E DIR EC T ASSISTANCE TO THE SMALL BUSINESS SECTOR.

THERE ARE SOME MATTERS WHICH AFFECT SMALL BUSINESSES THAT FALL W I T H I N THE

J U R IS D IC T IO N OF STATE GOVERNMENTS, RATHER THAN THE COMMONWEALTH.

I REFER PARTICULARLY TO PAYROLL TAX AND WORKERS' -COM PEN SA TION .

AS t MADE CLEAR IN THE BUDGET SPEECH, THE FEDERAL GOVERNMENT HOPES THAT

STATE GOVERNMENTS W IL L HAVE REGARD TO THE S P E C IA L NEEDS OF THE SMALL BUSINESS

SECTOR IN FRAMING T H E IR BUDGETS T H I S YEA R .

BEFORE TURNING TO THE OUTLOOK FOR THE YEAR AHEAD I WANT TO N A IL SOME OF THE

RUMOURS ABOUT THE IN FLATIO NARY CONSEQUENCES OF OUR;PETROL P R IC IN G D E C IS IO N S .

THESE D E C IS IO N S WERE TAKEN TO CONSERVE OUR CRUDE O I L RESOURCES.

WE TOOK THE V IE W , R ESPON SIBLY, THAT THE LONG RUN CONSEQUENCES OF FAILURE TO

CONSERVE OUR ENERGY RESOURCES WOULD BE Q U IT E I N IM IC A L TO OUR FUTURE ECONOMIC

DEVELOPMENT. .

I EMPHASISE THA T THE P R IC E OF PETROL IN A U S T R A L IA REMAINS AT CONSIDERABLY

LOWER LEVELS THAN IN THE MAJORITY OF COMPARABLE C O U N T R IE S , AND THE EFFECT

ON THE CONSUMER P R IC E INDEX IN 1 9 7 7 / 7 8 W IL L BE LESS THAN 1 PER C E N T .

IN CONCLUDING MY REMARKS T H IS EVENING I WANT TO STRESS THE GOVERNMENT'S FIRM

C O N V IC T IO N THAT CONTROL OF IN F L A T IO N IS THE KEY TO ECONOMIC PROGRESS.

WE HAVE NOT, AND WE W IL L NOT, G IV E WAY TO THOSE WHO WANT TO BUY MORE A C T I V I T Y

IN THE SHORT RUN A T THE COST OF MORE IN F L A T IO N .

T H I S Y E A R 'S BUDGET W IL L EXERT DOWNWARD PRESSURE ON THE RATE OF IN F L A T IO N

THROUGH THE Y EAR.

I T DOES NOT ADD IN ANY SUBSTANTIVE WAY TO PR IC E LEVELS THROUGH INCREASES

IN IN D IR E C T CHARGES.

THERE IS NO DOUBT THAT A CON TINU IN G REDUCTION |N THE RATE OF IN F L A T IO N W IL L

GENERATE ECONOMIC A C T I V I T Y AND W IL L CREATE THE C O N D ITIO N S FOR SUSTAINABLE

GROWTH IN THE LONG TERM.

NOTHING WOULD BE MORE DESTRUCTIVE TO OUR FREE ENTERPRISE SYSTEM THAN A NEW

UPSURGE IN P R IC E S .

UNDER T H IS GOVERNMENT, AND T H I S BUDGET, THAT W IL L NOT HAPPEN.

WE ARE A GOVERNMENT WHICH B E L IE V E S IN THE FREE ENTERPRISE SYSTEM AND, SIN C E

COMING TO O F F IC E , WE HAVE STEADFASTLY SOUGHT TO CREATE THE C ON DITION S IN

WHICH BUSINESSES CAN EXPAND T H E IR OPERATIO NS.

WE HAVE M A IN T A IN E D S T R IC T CONTROL OVER GOVERNMENT SPENDING AND HAVE BEEN

U N Y IE L D IN G IN OUR DETERMINATION TO CUT OUT WASTE AND EXTRAVAGANCE IN THE

USE OF TAXPAYERS' FUNDS.

THE S I Z E OF THE PUBLIC SECTOR IS BEING REDUCED, AND THE S I Z E OF THE PRIVATE

SECTOR IS BEING EXPANDED, AS A DELIBERATE O B JE C TIV E OF P O L IC Y .

THE RATIO OF BUDGET OUTLAYS TO GROSS DOMESTIC PRODUCT DECLINED BY MORE THAN

1 PER CENT LAST YEAR AND W IL L DECLINE A G A IN T H I S YEAR.

THE CANBERRA BUREAUCRACY HAS BEEN CUT BACK BY SOME 1 2 , 5 0 0 AND I T W IL L DECLINE

BY MORE THAN 3 , 0 0 0 IN THE YEAR AHEAD.

T H IS GOVERNMENT IS TOTALLY COMMITTED TO MAKING A U S T R A L IA , ONCE A G A IN , A

COUNTRY BASED ON THE FREE ENTERPRISE SYSTEM IN WHICH IN D IV ID U A L S ARE

REWARDED, RATHER THAN P E N A LIS E D ; FOR EFFORT AND IN I A T I V E .

WE HAVE PUT INTO REVERSE THE "CREEPING S O C IA L IS M " OF OUR PREDECESSORS AND L IF T E D

Q U IT E DRAMATICALLY THE TAX BURDEN THAT WAS NECESSARY TO PAY FOR THE PREVIOUS

GOVERNMENT'S PROGRAMS.

T H IS Y E A R 'S BUDGET OFFERS A NEW HORIZON - I T GIVES PEOPLE GREATER CHARGE OF

T H E IR OWN A F F A IR S AND AN UNPARALLELED IN C E N T IV E TO F U L F IL T H E IR A M B IT IO N S .

BUT A U S T R A L IA 'S FUTURE - ECONOMIC AND NON-ECONOMIC - IS NOT SOMETHING THAT

L IE S IN THE HANDS OF GOVERNMENTS ALONE.

THERE MUST BE C O -O PE R A T IO N .

W E 'V E GOT TO WORK TOGETHER AS A NATION I F WE WANT TO HAVE A PROSPEROUS AND

HEALTHY ECONOMY.

T H IS Y E A R 'S BUDGET, W IT H IT S UNPRECEDENTED CUTS IN PERSONAL T A X A T IO N , G IVES

THE LEAD.

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WE LOOK TO ALL SECTIO NS OF THE COMMUNITY TO WORK W ITH THE GOVERNMENT

TO GET ON W ITH THE JOB OF PUTTIN G A U S T R A LIA BACK ON THE R A I L S .

2 6 A u g u s t , 1 9 7 7 ·