Page 3233 - Week 08 - Wednesday, 22 August 2012
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video
(v) that the payroll tax regime in the ACT is now not as closely aligned with the regimes applying in NSW and Victoria as could be the case; and
(e) the current approach to applying the payroll tax legislation is making businesses in the ACT uncompetitive with respect to businesses operating in other jurisdictions; and
(3) calls on the ACT Government:
(a) to implement a four month moratorium on the ACT Revenue Office taking legal action against ACT businesses until such time as the way in which the legislation is applied is clarified; and
(b) that during the period of the moratorium, no interest be applied to any outstanding payroll tax.
Payroll tax is an important component of the ACT’s revenue stream. According to the latest consolidated financial reports released last week, payroll tax generates 26 per cent of all ACT taxation revenue and eight per cent of the ACT’s overall revenue. This is a significant revenue flow. Consequently, it is important to ensure that the integrity of the ACT’s payroll tax regime is maintained and to ensure that there is no leakage of revenue.
A critical aspect of a payroll tax regime is the way in which the legislation is administered, as the obligation to pay payroll tax depends on the circumstances of the different entities. There is a significant administrative responsibility placed on the ACT government to ensure that, on one hand, the payroll tax regime is ensuring that the correct tax is paid and, on the other hand, it is equally important to ensure that the application of the payroll tax regime does not disadvantage businesses through inappropriate administrative decisions which are not in accord with the intent of the legislation.
I have become aware in recent times that there are serious concerns within our business community about the way in which the ACT’s payroll tax regime is being administered. Before I get into the detail of this matter, I need to make a couple of general comments to provide a context for my motion.
First, as I noted, payroll tax is a critical source of revenue for the ACT’s budget, and we completely support the appropriate management of the payroll tax regime to ensure that all entities that should be paying payroll tax do so, that all entities pay the correct amount of payroll tax, and that any exemptions and other matters are administered appropriately. I emphasise that in no way do I condone any activities on the part of entities to avoid their legitimate payroll tax liability according to the law.
As I noted a moment ago, how the ACT payroll tax regime is administered is critical to the life of the private sector in the ACT. The broader consideration of the administration of the payroll tax regime must be consistent with the government’s overall approach to business. I recall the comedy of the 2003 economic white paper
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video