Release: Taxpayers welcome Perrottet’s push for tax reform

Release: Taxpayers welcome Perrottet’s push for tax reform

The Australian Taxpayers’ Alliance today welcomed many of the reforms stipulated in the Thodey Review. These include replacing stamp duty with a broad-based land tax, and broadening the base of the GST. However, we believe that payroll tax should be abolished, not just made uniform across states. Additionally, to compensate for the broadening of the base, the GST should be lowered.”

“In the aftermath of COVID-19, the Australian economy is ripe for structural reform,” said ATA Policy Researcher, Julia Kokic. “If the federal government heeds Perrottet’s call for tax reform, it would be the triumph of federalism.”

“States and territories should have more control over their tax revenue, instead of being dependent upon the benevolence of the federal government. We want the revenue closer to the people, where taxpayers are empowered to have more of a say.”

“Stamp duty has long been recognised as among the most inefficient taxes, exacerbating housing unaffordability, and disincentivising downsizing. A broad-based land tax would provide a reliable source of revenue for the NSW government and would diffuse the impact on the taxpayer.”

“A lower, broader GST does not distort consumer choices as much as stamp duty, payroll tax or other taxes like income and corporate taxes. And a broader GST doesn’t cause unemployment. The broader the base, the less painful the tax to taxpayers.”

“Payroll tax punishes businesses for hiring. It stifles growth and decreases wages. The tax on jobs was never a good idea, and should be abolished.”

“During the COVID-19 crisis, the federal government proved that they had the capacity to coordinate and cooperate with state and territory governments through the National Cabinet. As it comes time to rebuild our economy, we need this kind of teamwork to ensure sustainable revenue-raising for our state governments and a less burdensome system for taxpayers.”

Point 3 of the ATA’s five-point plan for a post-COVID-19 Australia is structurally reforming the tax code making it more efficient and less burdensome on the taxpayer.

Find the full report here.