This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Australian Prime Minister Won't Rule Out New Levy

By ROD McGUIRK

CANBERRA, Australia (AP) a¿¿ Weeks before he was elected as Australia's prime minister, Tony Abbott promised no new taxes. But with his first annual budget looming, Abbott on Tuesday wouldn't rule out a so-called deficit reduction levy to be paid by higher income earners.

Abbott has warned that his conservative government faces tough decisions to rein in mounting debt in its budget blueprint for the fiscal year starting July 1. The blueprint will be revealed to Parliament on May 13.

Abbott, who came to power with a decisive election victory last September after six years in opposition, said that introducing a temporary levy in the budget might not break his election promise to introduce no new taxes.

"There's been speculation, as you know, about a deficit reduction levy," Abbott told Melbourne Radio 3AW.

"I think if there was a permanent increase in taxation, that would certainly be inconsistent with the sort of things that were said before the election," he added, referring to his election promises.

But Abbott would say if the levy would be in or not for next year's budget, in keeping with previous government policies of keeping budget details secret until they are released to Parliament. In practice, budget measures are usually published in unsourced media reports every year as part of government strategies to control the message and manage public expectations.

Sydney's The Daily Telegraph newspaper reported on Tuesday that Australians earning more than 80,000 Australian dollars ($74,000) would pay a levy to help retire national debt over the next four years from July 1. The levy would be charged at 1 percent for incomes of AU$80,000 to AU$180,000, and 2 percent for higher incomes.

Opposition leader Bill Shorten said such a levy would amount to a broken promise not to increase taxes.

"A tax increase is a tax increase," Shorten said.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs