Page 373 - Week 02 - Tuesday, 4 March 2008
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The government provided a briefing on this bill. In that briefing I was particularly disappointed to learn that there had not been any consultation with the business community on this bill. I acknowledge that it is largely a technical bill, but this persuades me that it is even more important to consult with the users of the payroll tax system, particularly with practitioners who are familiar, on a day-to-day basis, with the systems they use. So the question is: why did the government decide that it was not necessary to consult with users of the payroll tax system? Was it laziness or just a sign of the arrogance of the Stanhope Labor government? Is the Stanhope government saying, “We know better than you”—that is, the business community that has to use the system—“as to what should be in technical tax policies”?
The Stanhope government has proclaimed its community consultation policy. Unfortunately, consultation seems to take place only when it suits this government. It did not take place with the closure of the Griffith library, because we knew what the answer would be. It did not take place on the closure of shopfronts and now it is not taking place on the changes to the payroll tax system. It is not only disappointing that there has not been any consultation on this bill; it does, in fact, fly in the face of the many claims that the Stanhope government would be open and accountable. These claims are repudiated constantly by the actions of the Stanhope government.
I now wish to comment on the views of the business community on payroll tax, for the information of the Treasurer and the government. It is interesting to note the comments of the Canberra Business Council with respect to payroll tax in its submission on the 2008-09 budget. The council submits that payroll tax is a significant disincentive to business growth in the ACT. That is an interesting comment which comes at a time when the Treasurer is constantly lamenting the lack of an economic base. Perhaps the Treasurer should take the time to read the Canberra Business Council’s submission. Beyond that general statement, the council goes on to plead the case for having payroll tax arrangements as they apply in the ACT being competitive with those that apply in other jurisdictions.
It is also interesting to note the views of the ACT Chamber of Commerce and Industry on payroll tax contained in the chamber’s submission on the 2008-09 budget. The chamber emphasises the impact of payroll tax on the competitive environment in which businesses are operating in the ACT. The chamber also develops arguments about the nature of the impact of payroll tax on the profitability and investment plans of local businesses. The chamber recommends that the rate at which payroll tax is applied should be reduced from 6.85 per cent to 6.0 per cent over three years. The chamber also recommends that the threshold over which businesses have to pay payroll tax should be indexed so as to avoid bracket creep. It will be interesting, in light of the recent windfalls that the government has received in regard to revenue, to see whether payroll tax, either the threshold or the rate, will be amended in the upcoming budget.
It is interesting to recall that the Chief Minister, when in opposition, said his government would like to be a low-taxing one. We have yet to see evidence of that, with so many taxes creeping in, particularly in this term. You have only to refer back to the first budget of the government in 2002-03, when the government actually dropped the position of the previous government, which was to move the threshold up
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