Don’t blow budget

Australians want debt and deficit fixed before taking tax cuts

PERSONAL income tax cuts are meant to be a centrepiece of this year’s Federal Budget, but a new poll shows Australians view paying down the nation’s debt and deficit as a higher priority.

A Newspoll survey published yesterday in The Australian found 26 per cent of respondents place reducing the debt and deficit as their top priority for the budget, just behind the 27 per cent who want increased funding on health.

Just 15 per cent supported cutting personal income tax, with the same proportion backing infrastructure spending, the latter being another flagged focus for the May 8 budget.

But Liberal frontbencher Angus Taylor believes Australians want economic leadership from their government.

“They want a government that is wanting to drive jobs, helping to drive investment, at the same time living within our means,” Mr Taylor told Sky News.

Labor’s shadow assistant treasurer Andrew Leigh said it was possible to offer people tax cuts and repair the budget.

“If you close the tax loopholes, if you don’t give a $65 billion big business tax cut, you can manage to do both of these things,” Dr Leigh said.

Australian Industry Group says cutting business taxes must remain a high priority for this budget.

Releasing a survey of large and small businesses, it put corporate tax cuts ahead of infrastructure spending, bringing the budget back to balance and measures to address current and future skilled shortages.

AI Group’s chief executive Innes Willox said these priorities have been consistent over the past five years.

The survey found most industries rank the reduction of the business tax burden top or the second highest priority.

“This is an unambiguous expression of support for the government to stay on course with the proposed phase-down in the corporate tax rate,” Mr Willox said in a statement.