Australian government plans to increase the top tax rate, which applies to any income earned over A$180,000, from 45% to 47% to reduce the budget deficit.
The government wants its legislation passed in the next fortnight of sittings so the tax increase can apply from July 1.
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The move is expected to generate an additional A$3.2 billion over four years.
However, Australian prime minister Tony Abbott faces parliamentary dissent on a new front after two government senators signalled they will not support their government’s new deficit levy in the Senate.
Finance Minister Mathias Cormann has rejected his concerns about applying the tax increase to companies, saying it would not be practical.
"We wanted all individuals to contribute to the repair of the budget and of course companies ultimately are made up of individuals – individuals which are liable for personal income tax on dividends from those companies," he told the Senate.
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By GlobalDataDespite the unrest in Government ranks, the debt tax is expected to pass the Senate this week with the support of the major parties, the Greens, and independent Senator Nick Xenophon.
