Australia, one of the most dynamic economies in the world, announced some tax cuts. The rates are still high compared to say, many Asian developed and emerging markets like HK, Singapore and Taiwan. Nonetheless, the cuts can further spur private and household consumption or go into private investments, either way will further enhance the economy.
Australia is attracting a lot of talented middle class Filipino households and professionals as migrants. If those talented and self-driven migrants (Filipinos, Vietnamese, Malaysians, other nationalities) will find the opportunities they need there, it won't be long that Australia will overtake many European countries in both economic dynamism and GDP size.
If this happens, many of its neighbors in Asia like the Philippines will benefit, as more trade, more tourism, more migration and people mobility will happen.
Sydney announces tax-cutting budget
By Sundeep Tucker in Sydney
May 9, 2006
In a 30-minute address to Australia’s parliament in Canberra, Mr Costello, Australia's Treasurer, announced that the country’s highest marginal rate of personal income tax would fall from 47 per cent to 45 per cent while the next highest rate would also fall by two percentage points to 40 per cent.
Tax thresholds will also rise, with only those earning above A$150,000 a year paying the highest marginal rate. Mr Costello said the changes would make Australia’s tax regime more internationally competitive, as it struggled to attract and retain key workers.
The government will also cut business tax by A$3.7bn over the next four years with reforms to the small business taxation system and higher depreciation allowances. Mr Costello further announced that super-annuation, or pension, benefits paid to over-60s from July 2007 would be tax-free, and he extended family tax benefits to more people....
Mr Costello denied the tax cuts would precipitate an increase in interest rates, as the budget would remain in surplus....