30 March 2007

Review of Inefficient State Taxes

As a result of the Australian Government’s tax reforms, the following taxes have been abolished:  accommodation tax, financial institutions duty, marketable securities duty and debits tax.  In addition, agreement has been reached on a timetable for the abolition of the following:  mortgage duty, rental duty, lease duty, stamp duty on unquoted marketable securities, cheque duty and stamp duty on conveyances of non-real non-residential property.

Despite this progress, stamp duty on non‑residential conveyances of real property is the last State tax listed for abolition in the Intergovernmental Agreement for which the States have yet to agree to an abolition schedule. Today I again called on the States and Territories to develop an abolition schedule for this remaining tax.

I indicated that the Australian Government would be willing to be flexible as to the timing and phasing of the abolition timetables. In particular, I said that the Australian Government would be willing to consider an abolition schedule that did not commence until 2010‑11, when the bulk of the existing Intergovernmental Agreement taxes will have been abolished.

I also indicated, in response to a request from one of the States, that the Australian Government would be willing to consider alternative tax reform reductions of equivalent value.

The Australian Government will continue to pursue this matter until it is resolved satisfactorily. The onus is now on individual States to provide an indication of how each intends to implement its commitment.