The Shadow Treasurer Dr Steve Thomas says that the 2022 budget released last week highlights the massive increases in taxation revenue being banked by the McGowan Government, again demonstrating the Government’s lack of commitment to economic reform.
“The budget papers show clearly that the total tax take is expected to rise, above and beyond the already high levels predicted in the Mid-year Review of five months ago, by $1.9 billion over the four budget years from 2021-22 to 2024-25” Dr Thomas said.
“Of this total, payroll tax will be $558 million higher, stamp duties will go up $789 million, and vehicle taxes like registration will rise by $317 million.”
“This means that payroll tax will rise to an expected $4.9 billion in 2025-26.”
“In Mark McGowan’s first year in power, 2017-18, payroll tax revenue was $3.3 billion.”
“That means payroll tax revenue is expected to rise by 48% over two terms of the McGowan Government, which is compounding growth of 5% a year!”
“This demonstrates once again we have massive budget surplus but no plan for economic reform in the area of business taxation.”
Dr Thomas said that page 33 of 2022 Budget Paper three identifies changes to the tax revenues announced since the Mid-year review, which includes the budget and pre-budget roll out of some minor changes that give a tiny proportion of tax back to the people who pay it.
“As his own budget document highlights, the Government is giving back $33 million worth of tax revenue over four years, which includes land tax relief for build-to-rent projects, a stamp duty rebate for cheaper multi-storey dwellings, and harmonising the duties on lower cost residential and non-residential assets.”
“I am happy to welcome each of these miniscule contributions, but giving back $8 million a year when your surplus is $5.7 billion and calling this economic reform is an absolute joke.”
“The only time you can engage in economic reform is when you have the cash reserve to do so, and our state will never have a better opportunity than right now.”
“We need to take the foot of the hose of small and medium business by cutting payroll tax and addressing the burden of over-regulation, so that they can provide the jobs and growth of the future when mining goes back to bust.”
“Instead of giving back to the business community when his own coffers are flowing over, Mark McGowan is taking even more, so that he can spend it on political announcements and open-ended funds he can divvy out of at his own convenience. That is not economic reform!”