27 October 2014

Tax cuts and a fair share for WA the keys to meaningful tax reform

Peter Katsambanis MLC, Member for North Metropolitan Region, has welcomed the latest news that the Prime Minister, Tony Abbott, has placed meaningful tax reform front and centre on the national agenda.

“Tony Abbott is showing maturity in leading the debate about how to fix Australia’s broken federation.” Mr Katsambanis said.

"But the starting point for any meaningful tax reform must be an acceptance that Western Australia deserves its fair share of GST revenue and an acknowledgment that genuine tax reform should seek to reduce the overall burden of taxation on all Australians.

"To embark on a process that does not seek to address these two critical issues would simply end up shuffling the deck chairs on the Taxation Titanic.

"Fixing the GST mess and cutting taxes for Australian taxpayers will require governments across the Federation to start living within their means. It will also sharpen the focus for all governments to reduce duplication, cut red tape and eliminate unnecessary expenditure." Mr Katsambanis said.

“While the fight to see our state receive its fair share of GST revenue is only one part of this broader debate, it is important to remember that since 1985/86, Western Australia has contributed a net total of $152billion to other states.

“In 2012/13 alone, Western Australia contributed $51.8billion, while only receiving $31.4billion.

“For that single year alone, every single Western Australian was ripped off to the tune of $8237. This situation is unacceptable and completely unsustainable. I will again highlight the risks to our Federation posed by continuing to punish WA when I lodge my submission to the White Paper on the Reform of the Federation.

"Tax cuts would not only allow Australians to feel that they have a genuine stake in the tax reform process, but will allow all of us to keep more of the fruits of our own endeavours which will increase productivity, fuel economic growth and lead to increased prosperity across our nation.

“I completely agree with the Prime Minister when he says the Commonwealth and the states should be prepared to look at all our existing taxes to make them lower, simpler and fairer.

"But of course lower, simpler and fairer should apply to all Australians - including Western Australians." Mr Katsambanis concluded.