State tax reform coming, maybe, sometime
Former NSW Labor premier Neville Wran had a three-stage system for maximising the media impact of government decisions – announce that you were going to announce something; then actually announce it; then announce that you had announced it.
Today, Premier Jay Weatherill added another step to the process.
He slipped an exclusive to The Advertiser that he was planning to announce today that sometime in the new year he would announce a discussion paper which would inform a plan to reform state taxes. Presumably, after announcing how everyone responded to the paper, the Government will then announce its response to the community’s responses.
Phew.
And even today’s announcement was a re-announcement.
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Earlier this year, following a major economic speech, Weatherill told gathered journalists that tax reform would be put on the table for discussion during this term.
Also in that speech, he outlined the Government’s economic priorities.
This afternoon, he will release a paper discussing one of his Government’s economic priorities – “South Australia: the best place to do business” – which is apparently the first of 10 such announcements to be released over the next five weeks.
Today’s paper, which is more of a brochure, flags the launching of a “South Australian agenda for tax reform”, which will take the form of a green paper on tax reform to be released in 2015. Responses to that green paper will guide government proposals for tax reform.
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If you’re confused, then just sit back and let the vibe wash over you – because that’s what this is all about.
In a month’s time, Labor is hoping to put another dent in the Liberals’ armour at the Fisher by-election.
With all the nasty talk lately about hefty Emergency Services Levy increases, and the Government using SA Water as a revenue cash cow (at your expense), the Government needed to make a statement on the cost of living.
Today’s four-page brochure contains exactly three sentences about tax reform:
- “Our tax system needs to be fair, efficient, support business prosperity and reward individual effort, while also supporting our ability to deliver the high quality community services which make South Australia such a great place to live.”
- By 2017 South Australia will: “Ensure the long-term sustainability of our tax system, while minimising disincentives to economic activity and promoting fairness”.
- And, within 12 months SA will: “Launch a South Australian agenda for tax reform.”
The rest of the brochure is a reiteration of Government ideas to make South Australia “the best place to do business”, including reforming the planning and development systems, removing red tape, and improving the efficiency and responsiveness of the public sector.
If you’re a small business operator looking for tax reform, then this confusing melange of announcement and re-announcement will probably make you tear your hair, because it is clear to everyone – the Government, business, the community sector, and the Opposition – that State taxes and charges need to be reviewed.
The good news is that that’s going to happen – eventually, and via a very circuitous route.
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