Wednesday 13 April 2005
STATE TAX REDUCTION
Mr FINCH (Question) - Mr President, I have a question for the Leader. After a recent meeting with the Federal Treasurer, the Premier, Paul Lennon, in a radio interview indicated that State taxes have been reduced in the order of $104.5 million. Could the Leader detail in what areas our taxes have been reduced?
Mr Harriss - Dorothy Dixer, fair dinkum.
Mr Finch - You have one next up.
Mr Parkinson - This is what the honourable member for Huon should have known yesterday.
Mr PRESIDENT - Order.
Mr AIRD - Mr President, I thank the honourable member for his question. The Government has provided or committed to $104.5 million in annual taxation relief. As a package, these are the biggest tax cuts in Tasmania's history. These cuts have resulted in Tasmania moving from the second-highest taxing State in Australia to the second-lowest taxing State
Mr Harriss - You are still the highest in the State's history.
Mr AIRD - I will just go through this.
Ms Thorp - If you are earning more, you pay more tax.
Mr AIRD - The tax cuts which have been implemented by the Government are detailed below. Payroll tax relief 2001-02 and 2002-03 was $19.2 million; abolition of the electricity levy on 1 July 2001 was $15.5 million; abolition of a number of stamp duties, 1 July 2002, was $7.4 million; land tax relief, 1 July 2002, was $2 million; abolition of minor gaming taxes, 1 July 2004, was $300 000; abolition of a number of concessional duties, 1 July 2004, was $100 000; First home owner duty concession, 20 May 2004, was $8 million. That is a total State initiative tax relief of $52.5 million. The intergovernment agreement tax relief, that is, subsequent to the GST - it is related to this - is abolition of financial institutions duty, 1 July 2001, $28.1 million.
Mr Harriss - You had no choice about them. They were part of the arrangements.
Ms Thorp - What does that have to do with it?
Mr PRESIDENT - Order, order.
Mr AIRD - Abolition of marketable securities duty, 1 July 2001, $2.4 million; abolition of debit duty, 1 July 2005, $21.5 million; a total of intergovernment agreement tax relief of $52 million. If you add together the total State initiative tax relief and the total IGA tax relief, you would get a total tax relief of $104.5 million.
Mr Fletcher - Is that in 2005 dollars?