The Federal Government has all but confirmed it will be delivering personal income tax cuts in the upcoming May budget.
Mr Keating's claim checks out. At no stage "throughout" the Howard years was the tax to GDP ratio lower than the current 21.6 per cent. However, it is important to note that the comparison is somewhat clouded by the July 1, 2000 introduction of the GST, a federal tax which replaced several state-based taxes. On Treasury's current forecasts, the tax to GDP ratio is predicted to rise in coming years to levels well above the Howard years. However, Fact Check does not consider these forecasts, which will almost certainly be amended due to new policy decisions and changing economic conditions, to undermine Mr Keating's claim. The extent to which tax cuts are in Australia's best interests is a different question, and not the subject of this fact check.
Fact check: Is Australia's tax to GDP ratio lower now than it was throughout the Howard years?
['None']