Minister Barr: CM calls on Commonwealth to follow ACT?s lead on tax reform
- Written by ACT Government
Released 05/06/2015
Australia needs a mature debate on tax reform if we are to repair the Federation.
I have written to the Federal Treasurer Joe Hockey in response to ‘Re:think’, the Commonwealth’s tax discussion paper.
I have told the Treasurer that in light of Commonwealth cost shifting – particularly in areas of health and education – it is vital to address states’ and territories’ revenue streams. Any rebalancing of responsibilities to deliver services must take into account how the states and territories will pay for them and what Commonwealth revenue will be made available.
I have advised him that the Tax White Paper and the Federation White Paper must be considered together. It is vital for the health of the Federation that while the Tax White Paper reviews the revenue side of things (the best tax mix), the spending and service delivery side is not reviewed in isolation.
Changing the tax mix is an important objective. Without reform the states will become more reliant on inefficient taxes, which is damaging to growth.
I acknowledged the reference in the discussion paper to the ACT’s nation-leading tax reforms. We are leading the way by abolishing stamp duty and insurance tax.
I have urged Mr Hockey to follow our lead of adopting tax reforms and to do so through broad consultation with the community in developing and implementing the reform process, encouraging public debate encouraged by the ACT Government, explaining the benefits of tax reform and ensuring transitional arrangements and are in place for those least able to adjust to the changes.
A mature debate from all levels of government and sides of politics is essential to successful tax reform, which is vital to delivering the services taxpayers deserve.
- Statement ends -
Section: Andrew Barr, MLA | Media Releases
