Release: NSW Budget aligned with ATA 5-point COVID-19 recovery plan
The Australian Taxpayers’ Alliance, the nation’s largest grassroots advocacy group representing taxpayers, today commended the work of Dominic Perrottet and the NSW government for the structural reforms in the NSW Budget 2020/21. The budget: lowers the payroll tax from 5.45 per cent to 4.85 per cent and increases the payroll tax-free threshold by an additional $200,000 to $1.2 million; replaces stamp duty with a broad-based land tax for new property purchases; reduces burdensome regulations.
“These historic changes will help millions of Australians achieve their financial goals,” said ATA Policy Director Emilie Dye. “For too long inefficient taxes and burdensome regulations have slowed and stopped Australians from pursuing their dreams.”
“Businesses failed to expand because they couldn’t afford the additional cost of hiring new employees. Individuals couldn’t purchase homes because they couldn’t save enough for both a deposit and the stamp duty.”
“COVID- 19 has made these governmental failings even more evident. At a time when every dollar counts to ordinary Australians, the government cannot allow wasteful systems to continue.”
In May, the Australian Taxpayers’ Alliance released their five-point policy proposal for a post COVID-19 Australia. The plan included calls for:
Deregulation: Use cuts to red tape as a fiscal stimulus to jump-start the economy.
Decentralisation of power: Shrink the federal government and put more money back into the hand of the state, local governments, and individual people.
Taxation: Implement structural tax reform and get rid of government waste caused by inefficient and costly taxes.
“I am happy to see so many of our ideas make it into the NSW Budget,” said Ms Dye. “COVID-19 has opened the eyes of many of us to serious structural problems with the way we tax and regulate people.”
“So many inefficiencies pop up at the state level, but the federal government controls the bulk of the tax revenue. The NSW government is spearheading a move to greater state independence by moving forward with reforms regardless of federal support.”
“But cutting payroll tax, the NSW government is making it easier for businesses to hire workers and pay better salaries.”
“For years the government has handicapped the housing market with the stamp duty. By switching to a low broad-based land tax, many Australians can turn their dream of buying a home into a reality. The switch acts as a tax cut for millions but in the long-run doesn’t hurt government revenue.”
“In his speech, Treasurer Dominic Perottet promised not to reimplement unnecessary regulations and to allow businesses to use that additional freedom to innovate. It’s good to see the NSW government using this crisis to make the government better instead of grabbing more power. The other states should follow suit.”