Friday, December 6, 2013

Trojan horse for land tax?

Michael Pascoe has taken aim at State Treasurers for their efforts at revenue reform: You should all be sacked. This includes a spray at the NSW incumbent after he squibbed on the absolute no-brainer of removing their levy on insurance policies.

This relates to defer a decision to change the emergency services levy from a charge on insurance policies to a land valuation: NSW puts brakes on emergency services levy reform. An equivalent levy in Queensland appears as a flat fee on council rates.

Victoria have already moved to reform their levy with a component based on property valuation: Fire services property levy. This component isn't large being only about $70 for an average residential property on top of a flat $100 component. 

It does however represent a small step perhaps towards land taxes. Land taxes featured in the Henry tax review and also in the draft Costello audit before disappearing from any reference in the final document. Treasurer Tim apparently also squibbed any possibility of revenue reform.

Among the most inefficient taxes are the stamp duties which remain in all states on insurance policies. While insurance costs remain an issue in FNQ reform should really be high on the agenda for our local representatives who continue however to maintain their political spin against the regional interest.

The stamp duty on residential property insurance falls more heavily on FNQ where insurance premiums are higher, and fails to appropriately tax those who choose not to insure. Replacement of the insurance stamp duty with a broad based residential land tax could be much more favourable to North Queensland?

There are many recent posts on land tax at MacroBusiness.

No comments:

Post a Comment