13 Jan 2009

Australia may bring forward tax cuts

12:57 pm on 13 January 2009

The Australian government is reportedly considering bringing forward large tax cuts planned for 2010 to help stimulate the economy if global conditions worsen.

The government has already introduced a $A10.4 billion economic stimulus package and believes more action may be needed.

A $A3.4 billion tax cut is intended from July 1, 2009 and The Australian newspaper says the government is thinking of bringing forward a further $A4.5 billion in cuts planned for mid-2010.

Treasurer Wayne Swan told the paper the government is ready "to take more decisive action" if the international situation deteriorates.

The Reserve Bank of Australia has already cut interest rates to 4.25% - a six year low. Markets expect a further cut to 3.5% at the bank's next meeting on 3 February.