Taxing Times: Interview with The Hon Peter Costello, Federal Treasurer
The Federal Treasurer Peter Costello recently announced that he would crack down on the State Government for double-taxing the people of Western Australian. MOTOR spoke to him about this and the industry’s own double-dipping woes…
JSL: According to you, many Australians are currently being double-taxed by the GST as well as the taxes it was designed to replace. As you are probably aware from your meeting with Peter Fitzpatrick, the vehicle dealers of WA are also the victims of double-dipping by the State Government following the introduction of the new stamp duty Ruling on loan and leave vehicles on 1 July 2005. Can you provide a national perspective on this issue for our readers?
PC: I am concerned about the tax burdens imposed on businesses and individuals by State and Territory Governments. The WA Government is projecting to collect $645 million in motor vehicle taxes in 2004-05 and $642 million in 2005-06, which is up 30 per cent since July 2001. Across the Forward Estimates total tax revenue for WA is projected to increase from around $4 billion in 2005-06 to $4.6 billion in 2008-09, which is an increase of around 16 per cent.