The Tasmanian Greens today responded to the latest report from the Institute of Public Affairs (IPA), which has found that state-based taxes, especially land tax, are placing increasing burdens on some Tasmanian businesses and potentially affecting their ability to increase employment levels.
Greens Acting Leader Tim Morris MP said the key problem with a number of state-based taxes, including land tax, is the narrowing of the base from which the taxes are drawn due to increasing exemptions, such as that applied to shacks last year, leading to the burden of these taxes falling on fewer people and businesses.
Mr Morris also said that this very issue is a key aspect of the current review of state-based taxes that was established last year after the Greens applied pressure in Parliament for a comprehensive taxation review.
“The state taxation base has been narrowing, whilst the demand for services from the state is increasing, which is not sustainable for either those left in the tax system, or for the maintenance of balanced budgets.”
“The Greens have been aware of issues surrounding state-based taxation for some time, and last year we successfully sought the establishment of a comprehensive taxation review to examine the many concerns that exist about the sustainability of our state-based tax system, said Mr Morris.
ABC Online:
Taxing times constrain employment
Tasmanians are paying some of the highest payroll and land taxes in the country.
The Institute for Public Affairs report ranked Tasmania fourth for overall state tax burden.
It found Tasmania’s land taxes are the highest in the country, while the payroll taxes are the country’s second highest.
The institute’s Julie Novak says the high taxes restrict employment.
“Businesses wanting to expand or businesses wanting to relocate in Tasmania do face a significant tax hurdle when it comes to establishing a location within Tasmania in which to establish themselves and grow,” she said.
Ms Novak says the State Government needs to review the taxes if it wants to create a more business-friendly environment.
And, Small business failures hit high
The Tasmanian Liberals want more assistance for the increasing number of failing small businesses.
Figures released by the Australian Securities and Investments Commission show 80 Tasmanian businesses went into administration in the 12 months to last October.
The Shadow Minister for Small Business, Adam Brooks, says that is the highest in a decade.
“There’s 37,000 businesses out there and most of them are on struggle street and the Government doesn’t seem to care,” he said.
