PM Transcripts

Transcripts from the Prime Ministers of Australia

Howard, John

Period of Service: 11/03/1996 - 03/12/2007
Release Date:
18/04/1999
Release Type:
Media Release
Transcript ID:
11255
Released by:
  • Howard, John Winston
NO DECEPTION ON INCOME TAX

The claim made by Mr Laurie Oakes on the Sunday programme, and immediately

parroted by the Federal Opposition, that my April 12 Prime Network

address contained a deliberately misleading assertion on income tax

is false.

In the Prime address I said: "According to a recent study by

the OECD, Australian workers on average wages pay more in income tax

than workers in any other industrialised country in the world, except

Denmark ".

This statement is based on Table 2 on page 14 of the OECD report,

"The Tax/Benefit Position of Employees, 1997," which

is attached.

In relation to income tax as a percentage of labour costs, the table

clearly shows Australia second behind Denmark.

That report's findings formed the basis of an editorial in "The

Australian" on April 6 1999.

That editorial made the overall point that "Only Denmark ranks

higher in a survey of the level of income tax paid on an average wage

as a proportion of gross wages in the 28 nations making up the Organisation

for Economic Co-operation and Development."

The OECD report also contained a table (Table 1) which provided information

on the income tax burden measured on a less comprehensive basis. This

appears to have been the table used by Mr Oakes in a bid to discredit

my statement. It is a pity that in the interests of balance, Mr Oakes

did not also flourish Table 2.

Table 1, which is also attached, nevertheless highlights the high

income tax burden imposed on Australian workers.

I specifically reject the assertion by Mr Oakes and the Deputy Leader

of the Opposition, Mr Crean, that I deliberately set out to mislead

the Australian public.

18 April 1999.

11255