Tasmania needs to move towards a more sustainable tax system if the economy is going to recover in
the longer term, the Institute of Chartered Accountants Australia said today.

Chief Executive Officer Lee White said that with a state election due next March, there was an
opportunity for political leaders to undertake a frank, comprehensive assessment of the tax system.

“The pressures on the Tasmanian budget aren’t going to abate any time soon, yet we can’t afford to let
measures that boost productivity continue to fall by the wayside,” Mr White said.

“The state and federal governments need to address our declining tax base if they are going to have
the funds to invest in measures that will make the state more competitive on the national and
international stage.

“The community is ready for an informed debate about the state’s finances and business is crying out
for it. Let’s get on with the job of having this critically important discussion.

“As part of this conversation, we will need to look at whether our current tax base needs to be revised
upwards and the role that a broader based GST with a higher rate might play.”

Mr White said one of the most crucial elements to boosting productivity was strategic investment in
infrastructure.

“This type of investment will also help create jobs, give the construction industry a much-needed leg up
and help make Tasmania more competitive,” he said.

“But the state and federal governments can’t afford to go it alone. Public-private partnerships will be
crucial if we are going to close the infrastructure deficit.

“Public-private partnerships do need to be approached with caution, however. We must look back at
past joint ventures here in Australia and learn from their successes and mistakes.”

Mr White made the comments in Hobart prior to an Institute panel presentation with Carl Dilena, CEO
of the North Melbourne Football Club, Stacey Woods of Aurora Energy and former Treasury Secretary
Don Challen, discussing navigating the business challenges faced by ongoing economic turbulence.

Tax sustainability and investment in infrastructure are some of the macro-economic issues explored in
future[inc] – a two-year initiative by the Institute which explores the major public and economic policy
challenges confronting the nation over the coming years and decades.

charteredaccountants.com.au
Chief Executive Officer, Chartered Accountants Australia, Lee White