Taxes, Health and Federalism.

The article informs that Australian Prime Minister John Howard Government's victory in the Senate, which comes into effect in July 2005, has led to a renewed push for reform. Taxation should be near the top of the list especially for Liberals but it isn't. The top marginal income tax rates are high and kick in at a relatively low level. The interaction between the tax and welfare systems produces effective tax rates of often over 80 per cent for low-income earners, locking many thousands of people out of work and in to welfare. Tax cuts will come after spending and subject to a balanced budget.