In Business

Victoria Treasurer Kim Wells

Federal Labor Urges Victoria To Tax The Family Home

Victor P Taffa

Land tax would be levied on the family home under a proposal put forward by the Gillard Labor Government today.

Federal Treasurer Wayne Swan used a meeting of state and federal treasurers in Canberra to dodge responsibility for national tax reform, instead calling on states to abolish stamp duty, funded by increases in land tax.

Victorian Treasurer Kim Wells said State Opposition leader Daniel Andrews must urgently tell Victorians whether he supported the Gillard Government’s calls to slug Victorian families with a huge increase in land tax.

“Labor would have Victoria more than triple land tax revenue and levy it on the family home.” Mr. Wells said.

“Victorians need to know as a matter of urgency whether Mr. Andrews supports the Gillard Government’s bizarre plan to triple land tax revenue.”

“Mr. Andrews has demonstrated he is prepared to put the political fortunes of his Federal Labor mates ahead of those of hard-working Victorians.”

“Last month he promised to sign Victoria up to the Gillard Government’s harmonisation of workplace laws which would impose a $3.5 Billion cost on Victorian businesses.” Mr. Wells said.

Mr. Wells also criticised misleading comments from Mr. Swan today that state Liberal treasurers had advocated for a broadening of the GST base and an increase in the tax rate.

“The Victorian Coalition Government has said on a number of occasions that we do not support extending GST to services like health and education and any suggestion by Mr. Swan is completely false.” Mr. Wells said.

“We have advocated for a number of sensible reforms, including a lowering of the low value GST threshold for imports.”

“The Commonwealth also needs to make an effort to close loopholes in the GST system which is undermining the revenue base.” Mr. Wells said.

“Today we also gave in-principle support to the harmonisation of payroll tax and the further examination of income tax sharing, subject to fair revenue sharing mechanisms, overall tax burden considerations and the impact on vertical fiscal imbalance.”

“The Victorian Coalition Government is willing to engage in a debate about tax reform, but I am disappointed that the Commonwealth is not interested in a genuinely national effort.” Mr. Wells said.

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