22/04/2010 - 15:41

SMEs to be slugged an extra $355m: Wyatt

22/04/2010 - 15:41

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The state opposition says proposed tax rises by the Barnett government would see local small businesses slugged an extra $355 million over the next three years.

The state opposition says proposed tax rises by the Barnett government would see local small businesses slugged an extra $355 million over the next three years.

Shadow treasurer Ben Wyatt said the state government is proposing the tax increases in the Revenue Laws Amendment Bill 2010.

A spokesperson told WA Business News the tax is a business stamp duty measure with the abolition of the non-real property elements of the stamp duty base for business conveyances.

"In Government, Labor introduced and budgeted for tax cuts for business starting from 1 July 2010," Mr Wyatt said.

"Now in the face of its uncontrollable spending the Barnett Government is looking to the business sector to fund its fiscal mismanagement.

"This tax on the business sector was legislated to be abolished in 2010, but will now remain in operation until 2012-13 and result in $355million in extra revenue for the State Government."

Labor had planned to change the stamp duty so that it would no longer apply to goodwill licences and intellectual property when a business was bought, rather it would apply to real property.

Mr Wyatt said in light of improving economic conditions Labor believes businesses should not be penalised for creating value.

"It is effectively a tax on success, innovation and value," he said.

"The Barnett Government is sending the wrong message to the business community, and Labor would not vote for tax grabs from successful businesses."

The tax proposal follows Premier Colin Barnett's comments a fortnight ago that a concession on payroll tax would be lifted on July 1 this year.

 

The announcement is below:

 

Labor has opposed the Barnett Government's tax rise on the business sector, Shadow Treasurer Ben Wyatt said today.

Mr Wyatt said the tax rises proposed in the Revenue Laws Amendment Bill 2010 would see an extra $355 million in taxes imposed on the Western Australian business sector.

"In Government, Labor introduced and budgeted for tax cuts for business starting from 1 July 2010," Mr Wyatt said.

"Now in the face of its uncontrollable spending the Barnett Government is looking to the business sector to fund its fiscal mismanagement.

"This tax on the business sector was legislated to be abolished in 2010, but will now remain in operation until 2012-13 and result in $355million in extra revenue for the State Government."

Mr Wyatt said in light of improving economic conditions Labor believes businesses should not be penalised for creating value.

"It is effectively a tax on success, innovation and value," he said.

"The Barnett Government is sending the wrong message to the business community, and Labor would not vote for tax grabs from successful businesses.

"Treasurer Troy Buswell makes much of the Liberal Party's opposition to high taxes. Yet, he is now taxing Western Australians more than any State Government in history."

Mr Wyatt said in the face of higher than expected economic growth these tax rises would generate more revenue to the State than the $355million forecast in the Mid Year Review.

"With expense growth crippling the finances of the State, the Treasurer has taken the easy option of raising taxes on the business sector rather than successfully doing the hard work in respect of spending control.

"Mr Buswell's sloppy fiscal management has already meant that $127million of the Liberal Party's election commitment of $250million in tax cuts has been removed from the Budget,

Mr Wyatt warned Western Australians would face high taxes and higher household bills in the upcoming 2011-12 Budget.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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