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Roozendaal Applauds Howard, Rejects Rudd
Monday, 28 September 2009

“We’d be happy to sustain the GST carve up at around the formula being used now”

NSW Treasurer Eric Roozendaal, ABC radio 29-9-09

After years of arguing NSW was being ripped off by the GST distribution, NSW Treasurer Eric Roozendaal is now happy with the rip off, Shadow Treasurer Mike Baird said today.

“For years we heard the State Labor Government complain NSW was being short changed on GST – now they’re happy to be short changed,” Mr Baird said.

“Eric Roozendaal today admitted NSW had it better under John Howard, with NSW facing a further loss of up to $900 million a year under the GST redistribution proposed under Kevin Rudd.

“At the first test of the new federalism, we see not only does NSW not benefit, it goes backwards to the tune of $1 billion a year.”

The Rees Labor Government has today embarked on an expensive advertising campaign to fight the proposed changes to the GST formula.

“Whenever the Rees Labor Government is faced with a problem, it puts out a media release or takes out an ad in the paper,” Mr Baird said.

“The simple point is Nathan Rees and Eric Roozendaal need to roll their sleeves up and deliver for the people of NSW.

“The fact State Labor is launching an advertising campaign to state their case on GST proves the new federalism is nothing more than hollow words.

“It is clear Nathan Rees and Eric Roozendaal are too weak and lack the authority to deliver a better deal for NSW families.

“NSW needs strong economic managers to turn this State around – not glossy ads and hollow words.

“The NSW Liberal & Nationals believe NSW is ripped off by the current formula and support this State getting its fair share of the funding,” Mr Baird said.

MEDIA: Lisa Harrington - 0406 726 880

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GST - Great State Tax
The GST is a great State tax as it is proportional to the size of the economy and is used to fund State government services which are a fairly stable portion of economic activity. 
 
Another great tax is Land Value Tax as the primary driver of the value of residential, commercial, retail and industrial land is the public and private services available to the occupants. If it wasn't, why is Sydney Harbour land so much more valuable than the equally beautiful Hawkesbury?? A single rate Land Value Tax, with no tax free threshold, for all land described above should replace all other property and contract transaction charges (Farm and mineral lands should have another type of Value tax applied to them.  
 
For economic efficiency, people should be paying for expensive government services, like public transport, roads, schools, provided to them, whether they use them or not. Police, ambulance, hospitals, fire services and other services are effectively on standby in our region. If we all had quarter acre block each of these services would cost much more to deliver. Therefore all residential, commercial, retail and industrial land should be taxed on the value of the land. The transaction to buy and sell land will then be very cheap - making it much cheaper for people to switch to land/apartments that best suits their needs. 
 
We can justify excise taxes on fuel, alcohol and tobacco because of the transport and health services they more than pay for. When most of us are driving cars powered by cheap/free solar electricity, another way will need to be found to fund roads - a kilometre toll of every kilometre travelled??? 
 
Of course we need Income Tax to also fund services and support payments, but 95% of the tax act should go as most of it is all about business tax deductions of some sort - then tax rates would be lower. 
 
Four very different taxes - GST, Land Value, Excise and Income taxes are all we need for an efficient economy, provide opportunities in life for us all and is fair to the less well off in our society.
Posted by: Peter Egan at 29-09-2009 14:25
sharing
Mike--Congratulations on getting mountain bikes bush bashing. But what will the riders do to those equestrians they meet on multi-use trails? We equestrians fought long and hard to keep open to horses tracks through Garrigal and Ku-Ring-Gai Chase National Parks. When Carr was National Parks Minister under Wran, he wanted to exclude all horses. National Parks even tried to get horses to wear nappies. I first had a letter published on the topic in May 1984. A couple of years ago, National Parks reconstructed a major trail (Neverfail) and invited all local equestrians to a formal opening an barbie by Mona Vale Rd. They had learnt the adage about flies (horseflies?) and honey. Will your bikies be willing to share those lovely trails, when not closed on Total Fire Ban days, with not only bushwalking pedestrians but also trail-riding equestrians of all abilities?
Posted by: J-Alice HOFLER at 29-09-2009 15:56