Greens push for Tax Review. The R word. Tues: Lara ‘irresponsible’

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The Tasmanian Greens are pushing for Treasury to take over the work of the now-defunct State Tax Review, and to produce a White Paper on future reform options.

Greens Treasury spokesperson Tim Morris said that whether Tasmania completes the taxation review is no longer discretionary.

“The Federal Treasurer, Wayne Swan, has made it clear that states who do not engage in genuine taxation reform will be penalized by the Commonwealth through the Grants Commission process,” Mr Morris said.

“We are urging the Treasurer to restart the work done by the panel, by directing Treasury to develop a Tax White Paper that set out options for the way forward.”

“This would provide the basis for a legislative way forward to address significant inefficiencies and inequities built into the state tax system.”

“The Greens accept that Labor and Liberal are not prepared to re-engage in the tripartisan Review Panel process, but do not accept that state-based tax reform is a dead duck.”

“Instead of tossing all the Review Panel’s hard work into the bin, the Greens believe there’s an opportunity and a responsibility to get value out of the work already done, by giving Treasury a clear directive to build on that work.”

“We are not on our own, as stakeholders including the TCCI, and the Small Business Council are also calling for reform. But the process must also involve social welfare agencies such as TasCOSS.”

“Decades of exemptions and concessions granted under pressure from lobby groups and vested interests have created a complex system that is expensive to administer, and businesses are screaming out for a simpler way.”

“Tragically, the decision to dump the tax panel means that Tasmania is missing the opportunity to be well positioned to take advantage of the new carbon economy.”

“Tasmania needs a tax system that’s sleek, streamlined and well positioned to take full advantage of the 21st Century carbon economy.”

“Of course, it’s never too late for Labor and Liberal to come back to the table and get the reform process back on track.”

• ABC Online: The Premier and the R word:

The Premier Lara Giddings has refused to concede Tasmania is in recession.

Tasmania’s unemployment rate is now 7.2 per cent, the highest in the country.

Last week Saul Eslake said that was equivalent to the usual definition of recession – two quarters of negative growth.

On Saturday the Premier Lara Giddings avoided using the “r” word.

“The Tasmanian economy when you look at the private sector is still growing at 3.5 per cent,” Ms Giddings said.

The Opposition’s Elise Archer said the Premier should face facts.

GIDDINGS MUST BITE TAX REFORM BULLET – OR STATE WILL PAY
Heed Call of Greens & Business Community

Tim Morris MP

The Tasmanian Greens today said it would be irresponsible of the Treasurer Lara Giddings not to direct Treasury to take up the work of the stalled Tax Reform Panel, which Labor and the Liberals walked away from last year.

Greens Treasury spokesperson Tim Morris MP said that Tasmania’s economic transition provided the opportunity to re-tool the state’s tax system to make it fairer and more efficient.

“Now is the time to re-tool the state’s taxation system to make it fairer, more efficient and potentially to improve revenues via efficiency gains,” said Mr Morris.

“The ‘carrots’ of state tax reform are a fairer, more efficient tax system, which is exactly why the Tasmanian Chamber of Commerce (TCCI) and the Small Business Council, among other stakeholders, and the Greens, have been calling for state-wide tax reform.”

“Presumably this is what Labor and the Liberals thought too last year when they sat on the tripartite Tax Reform Panel, before running away from making the tough but needed decisions.”

“The ‘stick’ for tax reform is being wielded by Federal Treasurer Wayne Swan. He has said states which don’t reform their tax systems will be penalised.”

“Treasurer Giddings needn’t worry about the Liberals’ craven populism because they are trapped in a taxation policy vacuum, while their traditional supporters, the TCCI and Small Business Council, are on the same page as the Greens – and potentially Labor – in calling for tax reform.”

“Ms Giddings needs to accept that taxation reform is not an issue which will go away. By continuing to run from it, she also risks failing her own leadership test, having today suggested she was showing leadership “on the challenges facing the state’s economy”.

“A constructive way forward is to accept the Greens’ call and for Treasurer Giddings to direct Treasury to continue the work on state-wide taxation reform. It is a shame Labor and the Liberals walked away from the Tax Review Panel but at least this solution would mean Treasury could continue its essential work.”

“Tasmania cannot afford to drag its feet on this issue but Treasurer Giddings is. The merits of tax reform should be enough to motivate Treasurer Giddings, without waiting for Treasurer Swan to act on his threats.”

“But Ms Giddings’ response today to the Greens’ call to direct Treasury to take up the tax reform challenge was singularly underwhelming, and suggests Tasmania could be on Mr Swan’s hit list rather than Ms Giddings heeding the call of the state’s business and employers to reform our taxation system,” said Mr Morris.