The Australian

2nd May 2005

It's time all States and Territories used the GST windfall to eliminate their inefficient taxes.

These archaic taxes hurt business, investment and employment. Reducing them will boost economic growth and increase job opportunities for Australians.

GST revenue flows have exceeded all expectations. Under the GST, the States and Territories are better off by around $ 1 9 billion in the current financial year alone. Over the next five years, the States and Territories will be ahead of the pre-GST system by a further$16.1 billion.

A part of this tax windfall should be returned to the community. There is no excuse for delay.

The GST was introduced specifically to eliminate nine inefficient taxes; all of which are listed in an agreement signed by every State and Territory in 1999.

The very first objective of this agreement was “the elimination of a number of existing inefficient taxes which are impeding economic activity" in return for GST revenue.

The nine inefficient taxes, all of which were suggested by the States and Territories themselves, damage the Australian economy and hamper business growth. Removal of anything leas than all nine makes a mockery of the original reform agreement.

The Federal Treasurer has offered the States and Territories additional funding to help them reform their inefficient taxes while retaining a major portion of their GST windfall.

A counter proposal by several States and Territories to eliminate some taxes over many years is not good enough. A deal is a deal.

Recent polls show that voters want the States and Territories to cut inefficient taxes. So does the Business Coalition for Tax Reform.

"Should the states use GST money to cut taxes such as stamp duty?"

Yes: 26,255 (88%)

No: 3,717 (12%)

Source: NineNSN Poll, March 7, 2005

Taxes influence where businesses locate, the number of people they employ and whether they can grow. The BCTR calls on State and Territory Governments to boost productivity, economic activity and jobs by removing all nine inefficient taxes. The ever-growing GST windfall to States and Territories provides a unique opportunity to implement reforms that will make the Australian economy stronger

Let's get on with the job

Remove ALL nine inefficient taxes

Business

Coalition for

Tax

Reform