TASMANIANS should consider a higher GST, cuts to stamp duty and lower payroll tax, the state's chamber of commerce and industry says. The federal government's Re:think discussion paper on tax highlights the business costs of payroll tax, and describes stamp duty as "inefficient". Payroll taxes and stamp duties account for around two thirds of the revenue generated by state and territory governments, the paper says. Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said the two taxes should be reduced in exchange for a higher, and broader-based GST. "For us to be able to keep up with the expectations of a first world nation, I think GST has to be on the table," he said. "The frustration has been is that any discussion about increasing revenue has focused on increasing taxes on businesses." Tasmanian Treasurer Peter Gutwein said the state government would not back a change to the GST's base, rate or distribution. "We will continue to support the equitable way in which the GST is distributed between the states," he said. "We will put Tasmania's best interests forward and will not accept anything that will financially disadvantage Tasmania." Mr Gutwein said he would discuss the paper with treasurers from other states. "The issues raised in the paper are closely linked with the wider discussion that is already underway about the future of the Federation," he said. Prime Minister Tony Abbott said any tax reform must enjoy popular support. "It's now up to the Australian people to decide where we collectively as a nation want to go," he said. "As far as I'm concerned, I want taxes to be lower, simpler and fairer." Mr Abbott said any changes to the GST would have to be backed by the federal opposition and all states.
TASMANIANS should consider a higher GST, cuts to stamp duty and lower payroll tax, the state's chamber of commerce and industry says.
The federal government's Re:think discussion paper on tax highlights the business costs of payroll tax, and describes stamp duty as "inefficient".
Payroll taxes and stamp duties account for around two thirds of the revenue generated by state and territory governments, the paper says.
Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said the two taxes should be reduced in exchange for a higher, and broader-based GST.
"For us to be able to keep up with the expectations of a first world nation, I think GST has to be on the table," he said.
"The frustration has been is that any discussion about increasing revenue has focused on increasing taxes on businesses."
Tasmanian Treasurer Peter Gutwein said the state government would not back a change to the GST's base, rate or distribution.
"We will continue to support the equitable way in which the GST is distributed between the states," he said.
"We will put Tasmania's best interests forward and will not accept anything that will financially disadvantage Tasmania."
Mr Gutwein said he would discuss the paper with treasurers from other states.
"The issues raised in the paper are closely linked with the wider discussion that is already underway about the future of the Federation," he said.
Prime Minister Tony Abbott said any tax reform must enjoy popular support.
"It's now up to the Australian people to decide where we collectively as a nation want to go," he said.
"As far as I'm concerned, I want taxes to be lower, simpler and fairer."
Mr Abbott said any changes to the GST would have to be backed by the federal opposition and all states.
