NZed on OZ Tax Cuts

The news that greeted me this morning was the "generous" Australian tax cuts announced yesterday. There are speculations right away this is going lure more Kiwis across the tasman specially high income and highly skilled professionals. Working in Australia means higher wages but will also now allow them to keep more of their income. Tax cut is one of the most hotly debated issue during last election. With the government sitting on a couple of billions of dollars in surplus, you can't help but wonder why can't they give away some of it? Well according to Labour, they are anticipating a slowing down of the economy in the next couple of years. As well as the weaking New Zealand dollar. They decided, keeping the surplus is a smarter choice for a softer landing. Rather than borrowing later on and cutting on social services spending.

However, there are those who disagree, including me. Hence I voted for National, and they almost won ! Six months after, the tax cut issue has been resurrected. Thanks to the brilliant minds of the Australian.