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It was a rocky day on the Australian share market as investors1 re-evaluated the fallout from the first US interest rate rise in near a decade. By the close, the All Ordinaries Index managed to gain of about 0.1% as did the ASX 200 Index. The major miners were down as commodity prices kept falling. Kapcharge dropped nearly 5% as fund managers sold out the company. Seven West Media was among the best performers. Across the region, it is a negative session after Japan's Central Bank kept interest rates on hold. Spot gold prices are pushing higher. Crude oil prices slipped another 1.9% in the US overnight. And a surging the US dollar overnight sent other major currencies lower including the Australian dollar. But it is recovering a little now to 71.37 US cents. Australians are paying substantially less income tax than a decade ago even as bracket creep gradually erodes3 previous cuts. Economists4 at Canberra University's NATSEM unit found that households are around 31.5 billion dollars better off since 2004 and 2005 due to tax cuts that they would have been if tax brackets were simply index to inflation. The findings show that the effects of bracket creep have been more than erased5 by the income tax cuts over the past decade. The report also shows the bracket creep is unlikely to erode2 these gains over the next four years.
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