The Government s fiscal record is all the more remarkable considering that the rates of income tax, company tax, wholesale sales tax and petrol excise have not been increased. Farmers and other businesses benefit from this downward pressure on interest rates. While international changes in interest rates puts pressure on our domestic rates, we continue to enjoy very low rates in some cases, the lowest rates for 30 years. We also expect strong jobs growth - 650,000 new jobs have been created over the past four years. By June next year, unemployment is forecast to be 6.25 per cent.
Tax reform delivers immediate and substantial benefits to Australian farmers.
The removal of the wholesale sales tax which is embedded in the prices of many inputs farmers use will significantly reduce business costs. This, together with the GST-free treatment of exports, improves the competitiveness of Australia s rural exports. The cost of diesel fuel for regional road and rail freight will fall significantly through the diesel and alternative fuels grants scheme and input tax credits for GST on fuel. Personal income taxes will be reduced substantially. Seventy per cent of primary producers now taxed at the marginal rate of 20 per cent will benefit from the increase in the tax-free threshold and a lower marginal tax rate of 17 per cent.