7News FOI investigation: Govt warned on tax cuts

Yahoo!7 August 25, 2008, 3:09 pm

It was a key objective of the Budget and has become the Rudd government's mantra: "to put downward pressure on inflation".

Even Federal Treasurer Wayne Swan said the Budget was "focused on dealing with the inflationary challenge".

But according to secret Treasury advice obtained by Seven News through Freedom of Information laws, it may not have been focused enough.

The pre-budget advice said to really fight inflation, the government should delay its $32 billion in tax cuts.

The deferral of tax cuts would reduce demand and put downward pressure on inflation.

However, Treasury also noted: "There are significant sensitivities with any proposal to defer or delay the tax cuts."

Political sensitivities the government was not prepared to tackle before the tax cuts took effect in July.

'''Read the uncovered documents below'''

Part 1: [http://seven.com.au/catalogueFiles/news/media/TaxFOI1.pdf Read the documents uncovered in the FOI investigation] Part 2: [http://seven.com.au/catalogueFiles/news/media/TaxFOI2.pdf Read the documents uncovered in the FOI investigation] Part 3: [http://seven.com.au/catalogueFiles/news/media/TaxFOI3.pdf Read the documents uncovered in the FOI investigation] Part 4: [http://seven.com.au/catalogueFiles/news/media/TaxFOI4.pdf Read the documents uncovered in the FOI investigation] Part 5: [http://seven.com.au/catalogueFiles/news/media/TaxFOI5.pdf Read the documents uncovered in the FOI investigation] Part 6: [http://seven.com.au/catalogueFiles/news/media/TaxFOI6.pdf Read the documents uncovered in the FOI investigation]

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