Legislation to scrap nuisance taxes introduced

25/6/03
Legislation to abolish a series of nuisance taxes and further simplify the State tax system has been introduced into State Parliament today.
Treasurer Eric Ripper said the legislation was the second tranche of sweeping reforms to the ramshackle State tax system. The first stage - dealing with payroll tax and land tax - passed through State Parliament yesterday.
"We promised at the last election that we would review the State tax system to make it fairer and simpler for households and businesses and we have delivered on that promise with the biggest overhaul in decades," Mr Ripper said.
"The State tax system is currently a dog's breakfast and way behind the times. A simpler, fairer system means we are better able to compete with other States and Territories and reduce the burden on business in meeting their tax obligations."
The tax reforms were a key part of the Government's aim to create a stronger economy with more jobs and opportunities.
Mr Ripper said the legislation would progressively abolish six State taxes over the next three years including stamp duty on cheques, leases and unlisted marketable securities, life insurance and workers' compensation insurance and the bank account debits tax.
The first changes would take effect as soon as possible after the passage of the Bill, expected later this year.
"Altogether, these taxes raise $150million a year but they are just too complex and cost prohibitive to administer and comply with," the Treasurer said.
"It's better for businesses and households that we get rid of these inefficient taxes."
Mr Ripper said the new tax system meant fewer hassles for business and families but there were also benefits for the wider community - and greater equity - in broadening the base of the State's larger taxes to pay for vital services in the long term.
"There are many modern forms of transaction that are not captured by the tax system which was designed for another era," he said.
"That creates the inequity of more conventional businesses bearing a heavy tax burden while others enter into arrangements that escape the tax net."
Base broadening measures in the legislation included:

• applying conveyance duty to a wider range of chattels, goodwill and intellectual property; and

• extending conveyance duty provisions to capture more transactions in 'land rich' companies.

Mr Ripper said the Government's review of tax reform was more than 200 pages long and contained more than 40 separate reforms. He paid tribute to the business reference group - chaired by solicitor Jonathan Ilbery, a former national president of the Taxation Institute of Australia - for its contribution to the development of the reform package.
"This tax reform package arose from extensive consultation with the business community who were mature enough to accept the financial gains and losses in the package to create a fairer and simpler tax system."
Further information on the reforms was available from http://www.osr.wa.gov.au
Minister's office: 9222 8788