Buswell casts doubt on effectiveness of tax cuts in Budget

Shadow Treasurer Troy Buswell has labelled today's State Budget as the "Boomerang Budget", saying while tax revenue had been cut by $95 million, the government would reap an extra $590 million in fees and charges.

The full text of an announcement from Mr Buswell's office is pasted below

Shadow Treasurer Troy Buswell has labelled today's State Budget as the "Boomerang Budget".

Mr Buswell said Eric Ripper had thrown out token tax cuts to the WA public, which were coming straight back into the Carpenter Government's coffers at a profit of nearly $500 million.

He said while the Treasurer had cut taxation revenue by only $95 million, he would reap an extra $590 million in Government fees and charges for the provision of goods and services in the next financial year.

These charges include the increases in household charges announced on Monday, which are 30 per cent above the forecast inflation rate and a clear breach of a long-standing Labor election promise, which alone are estimated to generate $110 million.

"Eric Ripper is holding a small cheque in one hand, but in the other hand behind his back is a massive bill for WA households," he said.

Mr Buswell said he was glad WA homebuyers were finally going to get some much-needed relief from Eric Ripper's excessive stamp duty regime.

"But if you are not a first homebuyer in Western Australia - all you can expect from Eric Ripper is bigger household bills," Mr Buswell said.

"The Treasurer's claimed changes to land tax are phantom tax cuts, based on what land tax rates 'could have been'.

"Eric Ripper will still collect more than $40 million in land tax revenue in 2007/08 than what he expects to collect this financial year.

"Once again, the Treasurer has failed to share the State's economic prosperity with the Western Australian community.

"Eric Ripper continues to mismanage the good times."

Mr Buswell said the Carpenter Government could not take credit for attempting to fix the housing affordability crisis gripping the State, because it had caused the problem.

"If the Government had paid attention to this crisis three years ago and increased land supply, the great Australian dream of owning your own home in Perth would still be a reality," he said.

Mr Buswell said Eric Ripper's claim of a record infrastructure spend was a joke, given that nothing ever seemed to get built.

He said Labor's infrastructure record was one of cost blowouts and delays - a pattern continued in today's Budget.

"The people of Western Australia want infrastructure, not huff and puff from a deceptive Treasurer," Mr Buswell said.

"Over the next few days, Eric Ripper's budget will unravel and he will end up with egg on his face."