Tax reform: an opportunity for local government
May 02, 2010
The president of the Australian Local Government Association (ALGA), Cr Geoff Lake, today welcomed the Rudd Government's intention to pursue tax reform in a gradual and considered manner.
Cr Lake said, "Local government recognises the importance of tax reform and getting it right. We look forward to working with the Government, and through the COAG process, to secure more sustainable funding streams for councils and local communities into the future".
While the Government's initial response to the Henry Tax Review focuses on taxing resource profits, superannuation and lowering company tax, the Henry Review provides a platform for the further consideration of a number of other areas relevant to local government including:
- Recommendation 120 that the states should allow councils a 'substantial degree of autonomy' to set property rates;
- Recommendation 62 that road-user charging for heavy vehicles be progressed with revenue flowing to asset owners, including councils;
- Recommendation 69 that COAG review zoning and planning arrangements to ensure they do not inhibit housing supply and affordability; and
- Recommendation 70 that COAG review infrastructure charges to ensure they are set appropriately and that charges reflect actual costs of developments.
"We welcome the Government's rejection of recommendations 52 and 53 that state governments expand land tax to cover all landowners. Local government believes that state governments have already overreached into property tax and we do not support any further burden being placed upon ratepayers by state governments.
"As the owner and manager of 80% of Australia's road network, local government has a significant stake in future road funding arrangements. If road user charging is to be progressed any further, then local government must also have access to new funding arrangements as well.
"We also welcome the acceptance by the Henry Review of the important role of developer charges to defray the costs of public infrastructure associated with new developments. However, we are disappointed that the Review has suggested there might be a link between planning processes and affordable housing. We look forward to correcting this myth in the appropriate COAG forums."
- Media contacts:
- ALGA President, Cr Geoff Lake: 0411 645 281
- ALGA Public Affairs: 02 6122 9434
