Tax break to keep Qantas jobs here

[Yada Yada]

Tax break to keep Qantas jobs here
By Katharine Murphy, Canberra
May 9, 2006

THE HOWARD Government will intensify pressure on Qantas to keep its 2000 heavy maintenance jobs in Australia by making it cheaper for the national carrier to service its fleet onshore. Today's budget will include a Government commitment to scrap the tariff Australian airlines pay on aircraft parts.

Axing the tariff will help all airlines, but it will boost the dominant player Qantas' competitiveness and make it more attractive for the airline to keep its maintenance facilities and workers in Australia.

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I may be wrong, but I feel that while this will be helpful, it probably only postpones the inevitable.

 

[NM]

I wonder who has played the better politics here? Geoff or John?

Not sure how much tariff is on aircraft parts now, but if the parts are cheaper in Aus, it will certainly reduce the costs of local maintenance.

This does show that the Aus government is keen to retain the work in Australia, which of course means they retain the tax revenue from the employment process (income tax, payroll tax etc). I see it as a positive move, but we will need to wait and see what ling term affect it has.

 

[Mal]

At least it's not a direct handout to QF.

Good to see the Govt making it fair for QF/DJ/anyone else who wants to start up an aircraft maint. facility.