13 May 2010

OECD Report Shows Rudd Government Policies are Easing Tax Burden on Australians

The Assistant Treasurer, Senator Nick Sherry, has today highlighted the release of the OECD's Taxing Wages 2009 report, which shows the income tax burden on Australians has decreased.

"The report is independent proof that the Rudd Government is delivering significant benefits to Australians through the continuing reform of Australia's tax system," the Assistant Treasurer said.

"Using the OECD's most comprehensive tax burden measure, all of the eight family structures considered in the report were shown to have a lower income tax burden in 2008-09 than in 2007-08," the Assistant Treasurer said.

"Australia remains a very low tax country relative to its OECD counterparts."

"For an individual on the average wage, Australia has the fourth lowest rate in the OECD – an improvement from Australia's rank of fifth in 2007-08," the Assistant Treasurer said.

"This year's Budget continues the Rudd Government's support for working families by again reducing taxation."

"From 1 July, the Rudd Government will fulfil its election commitment by delivering its third round of tax cuts."

"For a person on $50,000, this will mean an extra $450 this year compared to last. The same taxpayer will be paying $1,750 less personal in income tax than they were when we came to office."

"And we've announced important tax simplifications such as a standard deduction of $500, rising to $1,000, for all Australians."

The Taxing Wages report is an annual publication by the OECD that provides details and comparisons of taxes paid on wages in OECD countries.

The full report is available at www.oecd.org.