The Institute of Chartered Accountants has voiced its disappointment in the limited scope of the State Government's tax cuts announced yesterday.
After two years of lobbying the State Government for tax reform, the Institute's Western Australian general manager Con Abbott said he expected to see meaningful reform, which should have included reform of payroll tax, motor vehicle and conveyancing stamp duties.
In May 2004 the Institute called on the State Government for an independent review of state taxes, which it did not act upon. More than a year later, with the WA economy already in overdrive, the State Government was forced to conduct a review, which Mr Abbott believes has not been given the opportunity to implement wide-ranging and strategic tax reform.
Mr Abbott said it was no surprise that the State Government was finding it difficult to accurately review the impact of state taxes given budget forecasts were consistently understated.
"With the state awash with money and the real prospect of WA's surplus approaching $2 billion in 2005/06, the State Government has the perfect opportunity to conduct a robust review of taxes and come forward with a meaningful, long-term view," Mr Abbott said.
Mr Abbott said it was not unreasonable to expect transparency and leadership from the State Government in an arena that was critical to our future economic development.
The Institute of Chartered Accountants has called on the State Government to provide an indication of further budget initiatives planned over the next 12 months in the May Budget speech.
>
