This should be a very easy issue for the government to deal with. They need to deliver more tax cuts to the middle income/ mortgage belt than promised, by reducing the tax rate for people on $45K to $120K to 28 cents (from 32.5 cents). The current promise is a reduction to 30 cents. Leave the higher thresholds as they are for the time being. Some will scream about a broken promise to high income earners. The government's attitude should be that they can scream all they like: It's the middle income/mortgage belt that's borne the brunt of interest rate rises, and that's where tax relief should be exclusively directed.
