10th May 2006 
 
Many people have misread the Budget by failing to understand that effective tax rates have not been cut according to International Economist Professor Neville Norman, who presented at the Institute of Chartered Accountant’s Business Forum hosted in Adelaide today.  
 
Professor Norman said that this year’s budget provided adjustments, rather than reform, which the Treasurer had to give to offset the fiscal drag that has taken place over recent years.  
 
Addressing over 100 Adelaide business people, he said that if the Government had not made the adjustments it made last night, Australians would be paying significantly more taxes in real terms.  
 
“The Australian public would be seriously suffering from the affect of fiscal drag had Mr Costello not returned what had been taken by the Government over recent years. Last nights adjustments will merely stop us from hurting unnecessarily”.  
 
“It is also important to note that the Government has only offered these ‘tax cuts’ for the next 12 months, whereas in previous years ‘tax cuts’ were offered over several years. In essence, the Government knows it only has to do the minimum to keep the Australian public happy,” he said.  
 
Professor Norman said that inertia by the Australian population is allowing this to happen.  
 
“It is urgent for Australians and budget commentators to understand the budget economic numbers and the significance of the taxes within them.  
 
“Through ignorance these minor adjustments have been applauded when they should have been expected - even demanded by the Australian public. Australian’s know so little of the budget process… they are grateful when they should be expectant,” he said.  
 
For further information or for a copy of the presentation please contact Rebbecca Stewart on 0410 151 931.  
 
Professor Norman is available for media interviews until 10.00am today on 0414653 770.