Australian small business backs indirect tax reform agenda: new survey
Australian small business backs calls on the State and Territory
Governments to honour the intergovernmental agreement (IGA) regarding
GST, a new survey has found.
The survey, commissioned by the Business Coalition for Tax Reform (BCTR) and conducted by Eureka Strategic Research, found:
# Overwhelming support for the IGA between State and Commonwealth Governments,
which provided for the abolition of nine state business taxes: 86% of
businesses were in favour nationally (NSW: 87%, Victoria: 85%,
Queensland 88%, WA: 86%, SA: 87%)
# A strong majority of businesses supported a phase-out of remaining taxes over two, rather than six, years: 79% nationally (NSW: 79%, Victoria: 77%, Queensland: 83%, WA: 80% and SA: 76%)
# Strong support for stamp duty on commercial leases to remain on the list of taxes to be eliminated: 73% nationally (NSW: 70%, Victoria: 72%, Queensland: 79%, WA: 73% and SA: 71%)
# Small business believes both the NSW and WA Governments should commit to phasing out all nine taxes, as per the IGA: 85% nationally (NSW: 90%, Victoria: 78%, Queensland: 84%, WA: 90% and SA: 86%)
Eureka polled 1000 businesses across Australia for the survey.
BCTR Chair John Stanhope says the survey proves Australian business
backs the Federal Government’s calls for all State and Territory
Governments to honour their end of the GST deal, and remove inefficient
taxes that are punishing business.
“The original deal between the Federal and State Governments &
Territories was simple: reform nine inefficient state taxes in return
for GST revenue,” Mr Stanhope says. “The Federal Government has kept
its end of the bargain, but the States and Territories have failed to
deliver.”
“This survey shows enormous support by Australian small business for tax reform sooner rather than later.”
“The latest proposal by Federal Treasurer Peter Costello to allow
the States and Territories to use some of the GST windfall revenue to
fund programs apart from tax reform goes beyond what was originally
agreed, and is more than generous. Consequently, there is no excuse for
further delay.”
“The nine indirect taxes included in the original GST reform deal were selected because they cost jobs and stifle investment.”
The survey reinforces work by Access Economics which estimates that
the real GDP gain from abolishing all the remaining IGA taxes is $3.25
billion.
Mr Stanhope says the poll also showed small business does not
believe the governments of WA and NSW should be allowed to renege on
the IGA deal, and that stamp duty on commercial conveyances should
remain on the tax reform program.
(more) …
“Stamp duty on commercial transactions is the least efficient of all indirect State taxes,” he says. (cont’d) …
“It makes no sense to introduce indirect tax reform but leave the
least efficient tax in place, as some State Governments have pushed
for.”
About the BCTR:
The Business Coalition for Tax Reform (BCTR) is a forum for bringing
together the views of the business community on tax reform issues. The
BCTR aims to promote and improve Australia’s taxation system.
--- Ends ---
For more information contact:
John Stanhope – Chair, BCTR
via Angela Martinkus - Corporate Affairs Manager, Finance and Administration, Telstra:
(03) 9634 3872
Other contacts:
BCTR
Richard Gilbert – Investment & Financial Services
Association
Ph: 02 8235 2515
Peter Jones – Master Builders Association
Ph: 02 6202 8888
Freya Marsden – Business Council of Australia
Ph: 03 8664 2609
Bryan Stevens – Real Estate Institute of Australia
Ph: 02 6282 4277
Peter Verwer – Property Council of Australia
Ph: 02 9033 1926
Catherine Harris – Australian Institute of Company
Directors
Ph: 02 8248 6603
Freya Marsden – Business Council of Australia
03 8664 2609
Peter Jones – Master Builders Australia Inc
Ph: 02 6202 8888
Ian Wells – Real Estate Institute of Australia
Ph: 0418 138 569
States & Territories
NSW -
Kevin Herbert, Real Estate Institute of NSW
Ph: 02 9264 2343
Ken Morrison, Property Council, NSW
Ph: 02 9033 1906
Victoria
Andrew Pointer – Real Estate Institute of Victoria
Ph: 03 9205 6666
Jennifer Cunich, Property Council, Victoria
Ph: 03 9650 8300
Queensland
Fiona Bergin – Real Estate Institute of Queensland
Ph: 07 3249 7300
Robert Walker, Property Council, Queensland
Ph: 07 3225 3000
Western Australia -
Lino Iacomella – Real Estate Institute of Western Australia
Ph: 08 9380 8222
Joe Lenzo, Property Council, Western Australia
Ph: 08 9426 1201
South Australia -
Emma Slape – Real Estate Institute of South Australia
Ph: 08 8366 4300
Bryan Moulds, Property Council
Ph: 08 8236 0900
ACT -
Ken Roberts – Real Estate Institute of ACT
Ph: 02 6282 4544
Catherine Carter, Property Council
Ph: 02 6248 6902
Northern Territory –
Sue Shearer - Real Estate Institute of NT
Ph: 08 8981 8905
Tiz Zeroni, Property Council
Ph: 08 8981 6440
Tasmania –
Martin Harris - Real Estate Institute of Tasmania
Ph: 03 6223 4769
Stewart Wardlaw, Property Council
Ph: 03 6245 1922