Western Australia has surpassed New South Wales as the highest taxing state in Australia, with state taxes of $3,015 per capita in 2005-06.
Western Australia has surpassed New South Wales as the highest taxing state in Australia, with state taxes of $3,015 per capita in 2005-06.
According to the Australian Bureau of Statistics, NSW ranked second with $2,721 in taxes per capita, while Victoria was third with $2,651.
Tasmania had the lowest at $1,860.
The results also showed that Wezstern Australia had recorded the largest increase in tax revenue from stamp duties on conveyances, with an increase of $721 million.
The ABS said all states and territories recorded increases in taxation per capita.
Below is a release from the CCIWA:
Latest data confirms urgent need
for state tax cuts
Statement by CCI Chief Executive John Langoulant
Figures released today showing WA has taken over from New South Wales as the nation's highest-taxing state leaves Treasurer Eric Ripper no possible choice but to cut stamp duty rates and payroll tax in next month's State Budget.
His government is taxing the state's booming economy for all it is worth, lining Treasury's coffers at a rate that is likely to see a surplus of $2 billion plus for the second year in a row.
WA businesses pay a big proportion of this and are entitled to a proper share of any tax relief that the Budget might contain. Business will not accept a budget strategy that only delivers tax cuts, if any, to households and individuals.
Latest ABS data reveals that state revenue per capita has grown by 60 per cent since Labor gained office - increasing from $1,886 per person in 2000-01 when WA ranked fourth behind NSW, Victoria and the ACT, to reach $3,015 last year making it now the most heavily-taxed of all the states.
Stamp duty on conveyancing rose by a whopping 53 per cent last year. Businesses are behind many of the property sales contributing to this at values often much higher than the average.
Payroll tax grew by more than 12 per cent in WA last year, taking total collections from the state's employers to more than $1.4 billion a year. Stamp duty on motor vehicle sales, to which business is again a strong contributor, rose by 13 per cent also.
The key issue here is WA's interstate tax competitiveness, which overall is today the poorest in the nation. It is troubling to business that this does not appear to be of great concern to the Government, whose so-called State Tax Review is emerging to have been a time-wasting whitewash.
The Government may be relying on a belief it has plenty of time before facing the polls in 2009 to quell the anger of voters about the level of state taxes, however WA's continuing low tax competitiveness will be impacting on business investment decisions now.
The case for business tax cuts in the next Budget is already compelling. What more evidence does the Treasurer need than today's sorry ABS data showing the state's tax standing at the bottom of the national ladder?
