He said he was not going to increase state taxes to pay
for cuts inflicted by the Commonwealth.
"I'm not going to go back to SA and increase land tax
and stamp duties and business taxes to pay for Scott
Morrison's cuts, it's not going to happen," he said.
The Treasurers' meeting agenda includes specific
discussion of changes to state taxes as alternatives to
the GST, inlcuing the harmonisation of payroll taxes and
introducing land taxes.
Mr Morrison told The Australian Financial Review that
almost five months of discussions were "approaching a
point of irreconcilable objectives".
Mr Morrison said despite the best intentions of all
sides, it was apparent the states variously wanted to
spend all or some of the revenue from a tax increase -
such a higher GST or superannuation tax changes - on
health or other services.
The federal government wanted to use the proceeds to
lower personal and company income taxes to try to
stimulate the economy.
"The states want to support increased spending. We want
growth."
NSW PROPERTY LEVY
Just before the meeting began, NSW Treasurer Glady's
Berejiklian announced that from July 1, 2017, NSW will
abolish the emergency services levy on home insurance
policies and replace it with an emergency services
property levy, paid alongside council rates.
"The reform will mean the burden of funding these
services will no longer fall only on those with property
insurance but all landowners," Ms Berejiklian said.
"Under the current funding model, NSW property owners
who insure their properties are subsidising households
who don't purchase contents or building insurance."
She claimed the measure would be revenue neutral because
those who have home insurance would see a decrease in
premium prices by about $40 a year.
The average cost of the levy will be $160 a year. It
will be more stable source of revenue than an insurance
levy.
"This long overdue reform has been recommended by recent
reviews into State taxes, including the Henry review,
and shows the NSW Government is committed to tax
reform," Ms Berejiklian said.
The NSW decision follows the introduction of a land tax
pegged to council rates in the ACT three years ago. This
has seen rates almost double in that time.
In 2013, Victoria abolished its insurance-based fire
services levy and introduced a property levy in July
2013.
Source::
The Australian Financial Review, dated 10/12/2015.
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