Page 6267 - Week 19 - Tuesday, 17 December 1991
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MR HUMPHRIES (7.09): We on this side of the chamber are attacked, apparently, for taking an axe to a tax like payroll tax. I have to say that, if I were in the position of choosing a single tax anywhere in the Territory to get rid of or to mitigate, it would be payroll tax, because payroll tax is a tax on employment; it is a tax on jobs.
I, for one, do not wish to rise in this place and pretend that it is fine for any government, with 1,000,000 or 900,000 Australians unemployed, and 10,000 Australians unemployed in the ACT, to say that payroll tax is too important to deal with in this context; that I would rather see that harsh and unconscionable tax remain in place for another six months or longer and leave the opportunity to mitigate it as much as possible. I am not at all ashamed to say that I support any measure that will mitigate the effect of payroll tax in this community, because I think payroll tax is counterproductive. It is a tax, as I said, on jobs. It is a tax which ought to go.
We know, Mr Speaker, that payroll tax is going all over the country. The Victorian Government is making a major attack. The Victorian Labor socialist Government is making a major attack on payroll tax. The Federal Opposition has announced that it is going to abolish payroll tax. It bears remembering, Mr Speaker, that it is quite possible by the abolition of these provisions - that is, the changes being proposed in this amendment of Mr Collaery's - that we will see a number of Canberrans gain employment at this time. That is entirely on the cards.
Mr Berry: It will go straight into someone's pocket.
MR HUMPHRIES: You people across the way seem to think that any relief in the area of payroll tax will result in bigger, fatter profits to the corporate sector, the employers of this Territory. I do not agree. I think most employers in this Territory want to employ more people, and they cannot do so because one of the most substantial on-costs to their businesses is payroll tax. It is a very major on-cost to their businesses.
Mrs Grassby: You are voting on something you do not even know about, Gary.
MR HUMPHRIES: We have argued about these provisions before - many times before. Particularly, we argued about them in 1989. The Liberal Party's position at that time was clear. It has not changed and it is again a position we take here today. We will support these provisions because they result in relief in this area and that, I think, is good news for the unemployed in this Territory who so far have seen from this Government absolutely nothing to provide any relief.
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