The Tasmanian Greens are concerned that the looming threat of a cut in the state’s GST allocation added new urgency to the need for a comprehensive overhaul of state-based taxes to ensure the government has the ability to at least maintain, if not rebuild services currently being cut as a result of already flat-lining GST receipts.
Greens Treasury spokesperson Tim Morris MP said the review into the national GST carve-up is expected to issue its interim report in February and there are strong concerns that Tasmania will lose out under the recommendations and that there is currently no plan ‘B’.
“The Premier must stand firm and counter this push, but if it does succeed, even in part, Tasmania will need to find other sources of revenue or there will be further significant cuts in services right across the board.
“Given this looming threat to the budget bottom line, the State will need to redouble its efforts to set a vision for a Tasmanian taxation system that can meet Tasmania’s long-term revenue challenges.”
“Tasmania’s current state-based taxation system remains highly inefficient as a result of decades of exemptions and concessions granted under pressure from lobby groups and vested interests.”
“The current system of high tax rates on a narrow base for both Payroll and Land Tax means that we have limited income and Tasmania is not competitive with the other states.”
“Now is the time to make Tasmania’s taxation system fairer, simpler and more competitive, because it will need to deliver more revenue if our share of GST is cut as a result of the current national review, if we are not to see further cuts in services.”
“There is a very simple equation; if the government is expected to provide services it must have the revenue in which to pay for them.” Mr Morris said.
“It begs the question, are there some Tasmanians who could reasonably be asked to contribute more in to the government so that the government can put more resources into areas such as elective surgery and other ‘frontline’ services.”
