The WA Liberals have reneged on an election promise to roll out tax cuts over four years.
In the lead up to the 2008 election the State Opposition Leader at that time, Colin Barnett, promised $250 million in tax relief over four years.
Treasurer Troy Buswell has confirmed there will be no tax cuts in next month’s budget despite revised Treasury predictions of 3.75 per cent economic growth this financial year and 4.5 per cent next year.
Mr Buswell says there will be a significant time lag between the forecast economic growth and the recovery of the state’s finances.
“I can say this, that we are not in a position as we finalise this year’s budget to contemplate taxation reductions.
Economist Peter Kenyon says the growth figures should help the State Government deliver a surplus and does not think taxes should be cut.
“Given the situation we’re in, what the Government is doing, is in fact what it should be doing.
“As a tax burden, our burden is not great by other state’s standards.”
“There’ll be no increases but there’ll be no reductions in rates of tax.”