PM Transcripts

7
PRIME MINISTER,
FOR MEDIA 8 July 1985
Cabinet today unanimously agreed that to enable it to
discharge its responsibility of making final decisions,
work should proceed on the framework which, as enunciated
by me on Thursday, represents areas of broad agreement
emerging from the Tax Summit, including:
a crackdown on avoidance and evasion as
outlined in Option A;
some extension of the direct and indirect tax bases,
including a consumption tax on services;
adequate compensation of the needy;
reductions in personal income marginal tax rates;
the possible replacement of the income tax threshold
with tax rebates;
possible changes to the existing dependent spouse
rebate and family allowance arrangements; and
the possible introduction of a full imputation system
with company tax rates aligned with the top personal
income tax rate.
The Cabinet will require significant further details and
costings, to be provided as soon as possible, to enable
it to make such final decisions.
The Cabinet also agreed that:
the Treasurer bring forward further detailed papers
to enable the final decisions to be made; and
I would arrange for a Taxation Sub-Committee of
Cabinet to be established to consider submissions
prepared by t: he Treasurer, before they are
brought to Cabinet.