Tax cuts 'unlikely in the coming years'

Aussies may want to start putting more money aside in their high interest savings accounts as there are unlikely to be any tax reforms in the coming years, it has been suggested.

Greg Smith, who was in charge of tax policy at the Treasury until 2004 and who is a member of the Henry review panel, told a conference in Canberra that changes are unlikely until towards the end of the decade, reports the Australian.

"We're in a period of preparation for more structural reform for when there is more fiscal capacity later in the decade," he stated.

The expert added that because of inflation, taxes are likely to take a larger share of household incomes each year, which may make having cash set aside in savings accounts increasingly important.

Despite this, figures from IBISWorld published in July suggested that growth in wages has outpaced increases in the cost of living, which may mean some Aussies have more available to put in bank accounts.

Have a question about savings accounts? Ask the money gurus at Mozo Answers. ADNFCR-1761-ID-800730216-ADNFCR