In response to public anger about land tax and the Rann Government becoming the highest taxing State Government in South Australia’s history, Mike Rann and Kevin Foley have continued to refer to $360 million (or $350m) of tax cuts in last year’s budget.
K. Foley (January 31, 2005): “I want to cut taxes. That’s why we cut $350 million”.
M. Rann (December 7, 2004): “…we cut taxes $360 million in last year’s budget…it was only the end of May and people seem to forget that…”.
K. Foley (10 December 2004): “…in the last budget, $360 million of tax cuts”.
What are the facts about the $360 million tax cut?
FACT ONE: The $360 million was not a tax cut for one year but actually a four year tax cut figure (or an average of $90 million per year).
FACT TWO: $180 million of the $360 million is directly due to the abolition of the bank debits tax which was actually a decision of the former Liberal Government in 2000 as part of the GST deal.
FACT THREE: Even with the payroll tax “cut” for business this year, payroll tax collections will actually be $13 million higher than for last year.
FACT FOUR: So the $360 million tax cut is really the equivalent of an average $45 million per year for the next four years.
Note:
1. The benefit to SA from the GST deal from 2003/04 to 2007/08 is actually $860 million.
2. Land tax collections this year at $282 million are over double the land tax collection just 3 years ago.
