PM Transcripts

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PRIME MINISTER
FOR PRESS 2 DECEMBER 1977
TAX AND OVERTIME
The tax reforms and tax reductions my Government has already
made in the law which will apply in eight week's time on 1st
February, help Australians in all income groups.
Most people fall within the medium or middle income range
and it is in this area that tax on overtime is a big factor
for a lot of people.
Under the old Labor tax scales, Mr. Hayden's 1975 tax scales,
the penalty rates of tax took a large bite out of extra wages
and the pay packet from overtime. Under that Labor policy, the
high tax of.. 45 cents in the-dollar. came in at $ 200 a week, or
$ 10,000 a year.
our new tax reforms have ended that discouraging situation.
The normal rate of 32 cents in the dollar will apply from 1st
February, right up to $ 16,000 whether that includes overtime
or not.
We have achieved this by cutting back the number of tax brackets
from seven to three. We now have a simpler and fairer tax
system. It helps the man or woman who is prepared to work
a little harder towards a goal in life by not confiscating
a big part of overtime earnings.
Mr. Whitlam and the Labor party want to go back to the days of
penalty tax rates. This is a negative, discouraging approach
which ignores the fact that Australians have as much initiative
as any people in the world if only they are given the opportuinity.
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