Effective tax reform will be welcome
Tax reform that achieves measurable and tangible outcomes in both economic growth and sustainable jobs will be welcomed by the business community and the broader public, according to Business SA Chief Executive, Nigel McBride.
McBride said South Australia’s business sector has long advocated tax reform and, while welcoming the scope of the review announced by the Premier Jay Weatherill, indicated the peak business group would like to see payroll tax receiving due attention.
“It is pleasing to see that the government is looking at a number of reform options including key areas such as stamp duty and land tax,” McBride said.
“However, it appears that they are reluctant to pursue any significant reform of payroll tax which our members tell us is a barrier to employing people.
“Conveyance duty (primarily stamp duty) does stifle economic activity whereas a broad based land tax is fairer and more stable type of tax; however, as with all complex issues such as taxation, the devil is in the detail.
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“Inefficient taxes are a major issue with our members and a barrier to investment into SA.
“Business SA wants to work constructively with the State Government as it is vital that we can achieve reform that has measurable and tangible outcomes in both economic growth and sustainable jobs.”
While acknowledging that all States and the Federal Government have a stake in the shape and distribution of the GST, McBride said he hoped the State Government did not shy away from considering the GST in its current review.
“It may be that the more problematic State taxes, like payroll tax, can be reformed in conjunction with GST reform to ensure we end up with a more efficient tax system that produces positive outcomes for our country, our State and our people,” McBride said.
McBride said an essential element of any revised tax structure in the State should be support for the entrepreneurs and start-up companies that would be responsible for wealth and job creation in the future.
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