Lack of Transparency Around Telco’s Tax Break
The Tasmanian Greens today said Labor’s decision to offer a payroll tax cut to M2 Telecommunications Group highlighted the need for coherent state-based tax reform and transparency in decisions over state subsidies to business.
Greens Treasury spokesperson Tim Morris MP said there needed to be a clear set of policy guidelines concerning special payroll tax deals, to ensure fairness across the whole business sector, which the abandoned Tax Reform Panel could have provided.
“If there are going to be special deals for businesses on payroll tax, then there needs to be a publicly available policy document that shows under what circumstances tax cuts will be granted,” Mr Morris said.
“This payroll relief measure may have been in the State Budget, but it needs to be remembered that at that stage the state tax review was underway, which potentially would have recommended a final policy on payroll tax.”
“Labor still needs to answer what was the policy setting behind this decision, or was it just a desperate bid to placate a business that was threatening to leave the state?”
“This type of one-off ad-hockery places other businesses at a competitive disadvantage, and also opens up the opportunity for other businesses to hold the government to ransom.”
“We must remember that this is a taxpayer funded subsidy that comes out of state revenue, which is money that cannot be spent on frontline services.”
“The Greens recognise that some businesses will need assistance, especially those in the start-up stage, but the state cannot afford to get back to the Lennon era of picking winners and special deals for mates.”
“There is no doubt that Tasmania has a comparatively high payroll tax rate, and that reforming the tax system would make the state more attractive to businesses.”
“That is why the Greens are calling on Labor to resume the state tax review, which was cut short last year because Labor and Liberal didn’t have the backbone for a tough discussion on tax reform.”
“The Greens stand ready and willing to have a mature debate about improving our taxation system,” Mr Morris said.
Tim Morris MP, Greens Treasury spokesperson
