Page 1040 - Week 04 - Thursday, 18 June 1992
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offended by the one per cent land tax last year should wait and see what happens next year. These are all possible candidates. All I can say is: Whether you are a businessman or a private taxpayer, watch it. Any or all of these taxes are candidates for increases, not to mention the possibility of new taxes. Have you heard about the possible bed tax?
Significant increases on existing taxes or the introduction of new taxes will mean that the ACT will become the highest taxing political entity in Australia. And to what purpose? I suggest that the purpose is to enable the Follett Labor Government to make up for its poor decision making processes, its lack of forward planning and its lack of commitment to the structural changes and micro-economic reform measures that are demanded by our adverse situation, none of which are dealt with in the so-called budget strategy paper.
The Government has not properly availed itself of opportunities to implement a long-term budget strategy, despite the knowledge that it could not rely on continued transitional funding or special purpose grants from the Commonwealth, and we have known that now for three years. Ms Follett and her Ministers must now address their budget strategy seriously and ask themselves just how effective they have been in dealing with the obvious problems, rather than simply patting themselves on the back and being vague about their future intentions.
For the private sector, the Canberra Business Council in its submission to the Chief Minister - she refers to them as one of the groups with whom she consulted - made its position quite clear:
At present, too many policies seem to be inflexible - and unfortunately too many of them bow to the few at the expense of the many. It is the many unemployed who are carrying the burden.
That is the advice from the business community. What does the Chief Minister intend to do about it? The submission also gives Ms Follett a very blunt warning:
The private sector will not remain viable if it is further targeted for shortfalls in revenue.
Estimates on tax receipts which critically affect the private sector, such as payroll tax, land tax, stamp duty, financial institutions duty and the like, indicate a 42 per cent increase since 1989-90. A staggering $178m-plus was forecast to be received in tax revenues in these areas during this current fiscal year. As the Business Council says, any further taxation impost on the private sector will throw business into decline, this at a time when we want the private sector to grow and get itself out of recession. The Chief Minister in her budget strategy statement on Tuesday acknowledged:
There has been a slow-down in the private sector which has stopped any overall growth in ACT employment.
That is an understatement, but it is basically true. She must now have regard for that fact. Continuing to impose a heavy tax burden, or most certainly imposing a more onerous tax regime, on business will certainly prevent it from developing and growing and will perpetuate this stoppage of overall growth in employment. So much for jobs for our youth if she does nothing to encourage and stimulate the private sector. Where are the initiatives to do this? The budget strategy statement does not mention them.
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