Business warns Libs to hold fire on tax
The head of the state’s peak business lobby has called on the Liberal Opposition to exercise restraint in its critique of new tax reform measures put on the table by the Weatherill Government.
Labor has opened a consultation on broad reform measures, headlined by the abolition of conveyance duties – primarily stamp duty – to be replaced by a universal land tax, levied at an annual average of $1200 per property.
Opposition Leader Steven Marshall has already reacted strongly against the proposal, maintaining “the Liberal Party will certainly not support a tax on the family home”.
But Business SA chief executive Nigel McBride said he was “surprised” by Marshall’s response, and called for a “fully informed” debate.
“It would be unfortunate to come out so strongly until we see the detail,” he said.
“(The Government has) done what we’ve asked them to do, and opened up the tax system. All I’d say to the Liberals is ‘keep your powder dry’.”
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The response highlights the wedge politics Labor has successfully played with its gambit of opening debate on timezone change, nuclear power and – most significantly – broad tax reform, normally the purview of the Liberal Party.
Marshall told InDaily his party “supports tax reduction, but this is not about tax relief – this is about shifting the deckchairs”.
“I think the business community are delighted the Government’s talking about tax but I can’t see anybody saying ‘let’s increase land tax and put a tax on the family home’ – we’ll just never support that,” he said.
“We’re already the highest taxed state in the nation; it’s time for relief.”
He said the Liberal Party does not support the proposition underpinning the review that there can be no overall revenue reduction from any reforms.
His intransigence was not shared by his former media adviser Daniel Gannon who, as executive director of the SA Property Council, declared that “any tax reform discussion must start with stamp duty”.
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“It’s a barrier to investment, growth, economic stimulation, labour mobility and discourages older South Australians from downsizing,” Gannon said.
The Liberals didn’t take a position on stamp duty to the 2014 election, but advocated reducing land tax, payroll tax, blocking the carpark tax and opposing any new fees and charges.
“We’re in furious agreement (with the Property Council) – we need to reduce taxes,” said Marshall, “but the Government doesn’t want to reduce taxes, just shift the deckchairs.”
McBride urged the Liberals to play a constructive role in the Upper House rather than blocking any reform measure.
“Maybe through all of it there’ll be a great outcome for the SA economy and jobs,” he said.
“I understand that the Liberals believe some of this is a smokescreen but right now we’re seeing in my view something of a significant shift towards the business community – especially the very large SME (small and medium enterprise) community… While the devil’s in the detail it would be preferable to find out fully what this tax reform means, without attacking it.”
Marshall last week addressed a Business SA ‘Back To Business’ lunch, speaking about a co-operative approach on matters such as WorkCover reform. McBride urged him to take a similarly “bipartisan” view on tax.
“If it’s going to work for business in the state, let’s give it a red-hot try,” he said.
Treasurer Tom Koutsantonis intimated this morning that any significant reform proposals would likely not be introduced in the current term.
“If there is going to be dramatic changes to such a large number of people across the state, obviously the Premier will probably consider taking that to an election rather than just announcing it in a budget paper,” he told ABC radio.
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