The Tasmanian Greens today called for the Labor and Liberal parties to back a renewed push for state-based tax reform, following the Federal Treasurer Wayne Swan’s indication that states could be financially punished for refusing to scrap or reform inefficient taxes.
Greens Acting Leader Tim Morris said Treasurer Swan’s decision look at ways to use the GST carve up to encourage greater efficiency in state-based taxes should be seen as a warning to states that are dragging their feet on tax reform.
Mr Morris said it highlighted the foolishness and lack of foresight shown by the Tasmanian Labor and Liberal parties when they colluded to dump the State Taxation Review in November last year.
“This move by Treasurer Swan shows that Australian Government is determined to improve the efficiency of state taxes, as well as preventing states from taking advantage of the new Minerals Resource Rent Tax by jacking up mining royalties,” Mr Morris said.
“When the Labor and Liberal parties colluded to dump the State Taxation Review last year, they missed an opportunity to streamline and modernise Tasmania’s taxation system in preparation for the changes being flagged by Mr Swan.”
“It’s not too late to reinstate the State Taxation Review, even if it has to be in a slightly different form. The Greens believe it is the only responsible course of action.”
“If Labor and Liberal aren’t prepared to continue the productive discussion that was had through the state tax review, then they have a responsibility to outline what they plan to do.”
“The State needs to obtain a clear understanding from the Australian Government around what they expect fair and reasonable state-based royalty charges should be in future, following the introduction of the Minerals Resource Rent Tax.”
“For the benefits it will deliver to Tasmania’s economy alone, there’s every reason to streamline state-based taxes. The Greens stand ready and willing to have a mature debate about improving our taxation system,” Mr Morris said.
Tim Morris MP Greens Acting Leader & Treasury Spokesperson
