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Government cracks down on tax cheats

The Federal Government is set to crack down on tax cheats, who exploit legal loopholes, in order to create more jobs and boost the economy.

According to News Limited reports, the Government will target tax breaks used by the wealthy.

One tax measure being considered by the Government is abolishing a loophole that allows hobby farms and other lifestyle assets to be claimed as tax deductions. This could include claiming holiday homes, and farms listed as businesses for tax purposes.

If this measure takes place, it could save $700 million over four years and stop big deductions by about 11,000 high-income earners.

Prime Minister Kevin Rudd has promised a “stronger” boost to the Government’s stimulus strategy to protect jobs and boost the economy, with the Government revealing its tax and excise income has already been stripped of $115 billion by the global downturn.

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