Western Australians to have their say on major tax reform

5/7/05 Western Australians - and not Peter Costello - will help drive major tax reform in WA over the next five years under a plan launched today by Acting Premier and Treasurer Eric Ripper.

5/7/05
Western Australians - and not Peter Costello - will help drive major tax reform in WA over the next five years under a plan launched today by Acting Premier and Treasurer Eric Ripper.
Releasing the terms of reference for the State Tax Review, Mr Ripper said the Federal Treasurer was only interested in offering tax relief to some sections of business.
"The Gallop Government's State Tax Review aims to create a fairer tax system for all - including households," he said.
"From today, Western Australians will be given the chance to have their say on the shape of tax reform in WA over the next five years.
"Our aim is to enhance the competitiveness, equity and efficiency of our tax system to the benefit of all Western Australians."
Unlike the earlier Business Tax Review, the State Tax Review will not be restricted to a revenue-neutral outcome.
"These reforms will be achieved without compromising the community's expectations in relation to delivering services such as health, education and police, and infrastructure," the Treasurer said.
"They will be achieved while continuing to maintain the State's AAA credit rating."
The review will be undertaken in two stages with Stage One due to be completed by March 2006 and its initial findings to be considered in the 2006-2007 Budget.
Stage Two of the review is due to be completed by March 2007 with final recommendations to be considered in the 2007-2008 Budget.
WA taxes to be reviewed are:

  • payroll tax;
  • land tax;
  • conveyancing duty;
  • mortgage duty;
  • insurance duty;
  • motor vehicle duty;
  • hire of goods duty;
  • metropolitan region improvement tax;
  • gambling taxes; and
  • motor vehicle licence fees.
Mr Ripper said the review would also deliver the promised rewrite of the WA Stamp Duty Act, something last undertaken in 1921.
"At the completion of this process, the Gallop Government will have rewritten all the major State taxing statutes in modern language which takes into account contemporary business practices," he said.
In addition to considering public submissions, the Government will also convene a reference group representing key sectors of the community. This group will be a vital source of independent advice to the Treasurer for the review.
"I am pleased to announce that Mr Jonathan Ilbery, partner, Jackson McDonald and former national president of the Taxation Institute of Australia, has agreed to chair the reference group," Mr Ripper said.
"Mr Ilbery also chaired the reference group for the Business Tax Review conducted by the Government in our first term, which I consider to have been an outstanding success."
The Treasurer said the aim would be to determine the full membership of the reference group ahead of the September 30 closing date for public submissions.
Review details, including the terms of reference and a guide for public submissions, are available in a dedicated section of the Internet site of the Department of Treasury and Finance. It is accessible through http://www.statetaxreview.wa.gov.au
Treasurer's office: 9222 8788