Media Release

Peter Gutwein MP
Shadow Treasurer

Tuesday 29th December 2009

Tasmania - third highest taxing state

The IPA report on State taxation severity which rates Tasmania as the third highest taxing state highlights just how lazy and unresponsive the Labor Government has been over the last 11 years to ensure that as a state we can compete effectively against the other jurisdictions.

Labor appears to have forgotten that Tasmanian businesses firstly have to overcome the tyranny of distance, as well as other relative disadvantages such as lower educational outcomes and skill shortages.

Unfortunately what the IPA report indicates as well is that the State Government have been clinging on to barriers to business growth rather than removing them.

The report lists Tasmania as the third highest taxing state overall. This is a damning indictment of Labor’s performance over the last 11 years.

Regarding land tax and payroll tax - the two taxes that arguably have the greatest effect on employment - the IPA report ranks us as the second highest taxing state overall, which is a very poor outcome after 11 years of Labor.

The State Liberals identified land tax four years ago as an inhibitor to investment and employment and we are firmly on the record as to our ultimate aim being that we want to abolish this tax.

As we have consistently said, we will in the New Year announce our policy on land tax and this policy, will in contrast to Labors hastily cobbled together political response, will be fairer to all and ensure that over time our stated aim of abolishing this tax is achieved.

A Hodgman Liberal government will also, once the Rudd Government releases the full details of the Henry Review into State Taxation, consider what other measures could be responsibly taken to ensure that we are a very competitive place in which to do business.