2/7/03
The Gallop Government has for two years been calling for a review of the zone tax rebates for regional residents. Now, Federal Treasurer Peter Costello has finally been forced into reviewing the rebates by his own Liberal Party policy.
Local Government and Regional Development Minister Tom Stephens today announced that he was delighted to learn of the Federal Treasurer's plan to belatedly review a blueprint for a new tax rebate scheme.
"The WA Government appealed to the Federal Government seeking an increase in zone tax allowances soon after being elected in June 2001, and has still not received any response," Mr Stephens said.
The Minister said the value of zone tax rebates had plummeted by 20 per cent since 1993 due to a lack of indexation.
"Providing an appropriate level of allowance is vital in promoting regional development in Western Australia," Mr Stephens said.
"It is not clear whether the proposed allowance of up to $7,500 a year reflects suitable compensation for all people living in remote areas."
The Federal Government needed to justify the levels at which an allowance would be set.
"A rebate represents a crucial element in attracting people to, and retaining them in, regional areas and therefore it needs to accurately reflect what it costs to live in country WA," Mr Stephens said.
A meeting with each State's Regional Development Ministers and the Federal Government was planned for the end of July where he intended to raise the issue of zone tax allowances.
Previously scheduled meetings of the group had been cancelled by the Federal Government in a clear attempt to avoid discussing important regional development issues such as this.
"We want to provide a fairer deal for all regional Western Australians," Mr Stephens said.
"I will be arguing strongly for the Federal Government to bring zone tax allowances into line with the real costs of living in regional areas."
Minister's office: 9213 6500
