The taxation regime under the Rann Government is stifling the states economy and suffocating small business.
The independent Institute of Public Affairs (IPA) released its 2009 report of State Business Taxes revealing that South Australia’s businesses pay 4.8 per cent more state business taxes than the national average and 10.5 per cent above tax liabilities in Western Australia.
Rob Lucas, Shadow Finance Minister, said that the IPA’s report was a damning reflection of Treasurer Kevin Foleys eight years of financial mismanagement.
“South Australia is the most severely taxed state for business, taxing more harshly than the basket case state of NSW,” Mr Lucas said.
“The IPA indicates that a typical business in SA pays over $247,000 in state taxes per annum.
“Land tax liability for an average business in SA is 69 per cent above the national average and 536 per cent above land tax liabilities in Western Australia.
“The SA Liberal Party has committed to reforming SA’s antiquated taxation system if successful at the 20 March 2010 state election.
“As a first step in that taxation reform a Redmond Liberal Government would offer relief to long suffering land tax payers from 1 July 2010 – around 57,000 residential and business people with a land value below $250,000 will no longer pay any land tax .
“The IPA report backs up the figures released earlier this year by the Commonwealth Grants Commission which also rated South Australia as the highest taxing state.
“State Budget papers reveal that state tax revenue has increased by 61 per cent since the Rann Government came to office.
“Commenting in The Australian newspaper about the IPA’s 2009 report, author Julie Novak summarised the state of SA’s economy saying “This is on top of an underperforming state economy and a projected budget deficit for this year due to weak expenditure controls”.”
