Australia to release tax review by budget time

Sydney: Australia will release the results of the Henry tax review by the time the federal budget is released in mid-2010, Treasurer Wayne Swan said Sunday.

"We are going through that in a careful and considered way," Swan said on Australian Broadcasting Corp. television. Last year's budget was released on May 12. "There will be plenty of time for debate and it will be released by budget time."

Australia needs a fairer and simpler tax system to improve productivity and the tax review, headed by Treasury Secretary Ken Henry, will provide a 10-year plan for reform, Swan has said. Australia's economy grew last quarter at the fastest pace in almost two years, underscoring the central bank's decision to boost interest rates for the fourth time in five meetings.

"The overall picture remains consistent with more interest rate hikes ahead," Shane Oliver, the Sydney-based head of investment strategy at AMP Capital Investors, said in an e-mail. Recent economic data is "consistent with a continuation of the economic recovery."

Governor Glenn Stevens says Australia's economy is running at or near "trend" after skirting last year's global recession. Growth may strengthen this year as China's demand for resources stokes investment by companies including BHP Billiton Ltd. and Chevron Corp.

Swan said last month he was confident the economy is strengthening after last year's global recession.

The nation's gross domestic product rose 0.9 per cent from the three months through September as companies increased investment.

GDP is forecast by the central bank to climb 3.25 per cent in the three months through December 2010 from a year earlier, after gaining an annual two percent in the fourth quarter of 2009.