The Government should be "very worried" by the effect of huge Australian tax cuts on the New Zealand economy, National's finance spokesman John Key said today.
"We're already bleeding talent to Australia. This will accelerate the brain drain," he said.
"Labour needs to wake up to the fact that Australia is launching a charm offensive on our skilled and professional workforce."
Australian Treasurer Peter Costello last night delivered his third income tax cut in three years with a A$22 billion ($23.5 billion) package that ensures every taxpayer will be better off.
Mr Key said the income gap between the average Australian household and the average Kiwi household was growing wider.
The Australian Government's move provoked a call by the ACT Party to follow its lead.
"Finance Minister Michael Cullen could easily deliver a tax cut for every worker. It's fair, affordable and Kiwis deserve it," ACT's leader Rodney Hide said.
- NZPA
Australia tax cuts bad for NZ, National says
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