Abbott plans different tax zones

Australia could be split into different tax zones under a new plan by Tony Abbott to develop economies in northern areas of the country.

An Abbott government would use tax incentives to lure private sector workers to cities such as Darwin, Cairns and Karratha, while also forcibly relocating tens of thousands of public sector jobs from areas like western Sydney.

In a leaked document, called Vision 2030 and obtained by the Daily Telegraph, plans to split the country into two different personal tax zones at the Tropic of Capricorn were revealed.

The draft policy has reportedly already been sent to state and territory premiers.

Abbott hopes tax incentives and relocation of government employees will increase populations in the Top End and create a new food bowl.

The policy also includes plans to relocate some federal departments and defence facilities to the north, News Limited reports.

The document has also revealed an Abbott government would slash $800 million from the foreign aid budget to build a tropical health medical centre in far-north Queensland.

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