Minister Barr: Prime Minister gives ringing endorsement of ACT Labor’s tax reform
- Written by ACT Government
Released 08/02/2016
The Prime Minister Malcolm Turnbull has given a resounding endorsement of ACT Labor’s tax reform agenda, saying that the ACT has shown leadership in reducing our reliance on stamp duty and improving the sustainability of our tax system.
On ABC Insiders program yesterday, the Prime Minister said that the reforms the ACT has put in place is an approach suggested by almost every economist in Australia.
“There are tax reform changes, particularly at the state level, which every economist will tell you would give you a very significant lift to GDP. For example, if you were to replace stamp duty on property transactions, and replace it with a land tax, a general land tax, there isn't a tax economist or theorist in the country that wouldn't tell you that would be a good move, because taxes on transactions like sales of property obviously inhibit trade, they slow down economic activity.”
“Everyone understands that. So that would get a policy tick. Political difficulty, however, is very, very high, possibly 11 out of 10, which is why nobody other than in the ACT has attempted it.”
Prime Minister Malcolm Turnbull, ABC Insiders, 07 February 2016.
The ACT’s reforms are national leading – and since 2012 we have cut stamp duty on a $500,000 property by close to $6,000. We have reduced stamp duty for eligible pensioners and first home buyers by up to $20,000. We have also cut highly inefficient and unfair taxes such as insurance tax, with this tax to be fully abolished by 1 July this year.
In every Budget that I am Treasurer, there will be cuts to conveyance duty. Our goal is to ensure the ACT has a more sustainable revenue base in the future, which will allow us to continue funding our world class health and education systems and see our city prosper with a strong and stable economy.
I’m glad that Malcolm Turnbull has joined many others in supporting our tax reforms, and I look forward to working with him on broader reforms to the nation’s taxation system at upcoming COAG meetings.
- Statement ends -
Section: Andrew Barr, MLA | Media Releases
