Treasurer Ripper details four rounds of tax cuts in WA over the past two years, totaling $690 million in 2006-07 and projected to reach $1.1 billion in 2010-11, including the abolition of mortgage duty and hiring duty.

AnsweredQoN 48Legislative Assembly
Asked
28 March 2006
Portfolio
Treasurer

QuestionView source ↗

TAX CUTS IN WESTERN AUSTRALIA
Will the Treasurer please detail the latest round of tax cuts in Western Australia? Mr E.S. RIPPER

AnswerView source ↗

With great pleasure, particularly because the opposition seems to have a very inadequate grasp of the tax relief that is being offered. The opposition attacks each round of tax cuts as they come without taking into account the overall context. In the past two years there have been four rounds of tax cuts. The total annual relief arising from those four rounds of tax cuts in two years will be $690 million in 2006-07. That amount will rise to $1.1 billion in 2010-11. Several members interjected. Mr E.S. RIPPER : Members opposite sneer and scoff. The amount of $690 million is how much taxpayers will benefit from in 2006-07 as a result of this government’s four rounds of tax cuts. The latest round will deliver $924 million worth of relief over five years. We will abolish mortgage duty in two stages. That will be a relief to taxpayers of $150 million a year from 2008-09. Average borrowers who take out a $300 000 mortgage will save $750, and a small business - Several members interjected. Mr E.S. RIPPER : The opposition does not seem to care about this. A small business that borrows half a million dollars will save $2 000 in duty. Another tax abolition that I think will also be important to small businesses is that of hiring duty; that is, video stores and retailers that hire out equipment such as lawnmowers and party equipment pay rental duty. That will go. Since the government has come to office, it has committed to abolishing 11 taxes. Each time we do so, the opposition attacks the latest measure as being insufficient and inadequate. Since 2001, the government has committed to abolishing 11 taxes, and to $690 million worth of relief this financial year. Although the federal Liberals are keen to talk about state taxes, the state Liberals are not prepared to talk about federal taxes. There is a problem with taxation in this country; it is a federal tax problem. The glutton at the tax table is the Howard government. Let us look at the facts for Western Australia. I will be generous to the commonwealth and count the goods and services tax as a state tax, even though it is levied by the commonwealth, according to commonwealth law. For the purpose of this analysis, Western Australians pay $3 967 in state taxes per capita, but $10 876 per capita in commonwealth taxes. In this state, the commonwealth tax take per capita is almost three times the state tax take per capita. There is a problem with tax reform in this country; it is a federal tax reform issue. For example, the very high tax rates that people face when they seek to move from welfare to work are disgraceful. Everyone in this house should be angry at the fact that we are discouraging people from moving off our welfare rolls and into work because of the very high effective commonwealth tax rates. That is a problem that Peter Costello needs to attend to. When I go to Canberra later this week for the Treasurer’s conference, I will say to Peter Costello, “Don’t focus on state taxes; focus on the real problem. Focus on federal taxes; focus on those poor people moving from welfare to work, who face very, very high rates of taxation”, because Peter Costello will not grasp the reform nettle and will not reform commonwealth taxation. The SPEAKER : Members, the following comments are directed mainly at members of the ministry. Question time has been going for almost 35 minutes, during which time only six questions have been answered. I urge ministers to answer their questions more succinctly so that we can get through more questions more quickly.
Mr E.S. RIPPER replied: With great pleasure, particularly because the opposition seems to have a very inadequate grasp of the tax relief that is being offered. The opposition attacks each round of tax cuts as they come without taking into account the overall context. In the past two years there have been four rounds of tax cuts. The total annual relief arising from those four rounds of tax cuts in two years will be $690 million in 2006-07. That amount will rise to $1.1 billion in 2010-11. Several members interjected. Mr E.S. RIPPER : Members opposite sneer and scoff. The amount of $690 million is how much taxpayers will benefit from in 2006-07 as a result of this government’s four rounds of tax cuts. The latest round will deliver $924 million worth of relief over five years. We will abolish mortgage duty in two stages. That will be a relief to taxpayers of $150 million a year from 2008-09. Average borrowers who take out a $300 000 mortgage will save $750, and a small business - Several members interjected. Mr E.S. RIPPER : The opposition does not seem to care about this. A small business that borrows half a million dollars will save $2 000 in duty. Another tax abolition that I think will also be important to small businesses is that of hiring duty; that is, video stores and retailers that hire out equipment such as lawnmowers and party equipment pay rental duty. That will go. Since the government has come to office, it has committed to abolishing 11 taxes. Each time we do so, the opposition attacks the latest measure as being insufficient and inadequate. Since 2001, the government has committed to abolishing 11 taxes, and to $690 million worth of relief this financial year. Although the federal Liberals are keen to talk about state taxes, the state Liberals are not prepared to talk about federal taxes. There is a problem with taxation in this country; it is a federal tax problem. The glutton at the tax table is the Howard government. Let us look at the facts for Western Australia. I will be generous to the commonwealth and count the goods and services tax as a state tax, even though it is levied by the commonwealth, according to commonwealth law. For the purpose of this analysis, Western Australians pay $3 967 in state taxes per capita, but $10 876 per capita in commonwealth taxes. In this state, the commonwealth tax take per capita is almost three times the state tax take per capita. There is a problem with tax reform in this country; it is a federal tax reform issue. For example, the very high tax rates that people face when they seek to move from welfare to work are disgraceful. Everyone in this house should be angry at the fact that we are discouraging people from moving off our welfare rolls and into work because of the very high effective commonwealth tax rates. That is a problem that Peter Costello needs to attend to. When I go to Canberra later this week for the Treasurer’s conference, I will say to Peter Costello, “Don’t focus on state taxes; focus on the real problem. Focus on federal taxes; focus on those poor people moving from welfare to work, who face very, very high rates of taxation”, because Peter Costello will not grasp the reform nettle and will not reform commonwealth taxation. The SPEAKER : Members, the following comments are directed mainly at members of the ministry. Question time has been going for almost 35 minutes, during which time only six questions have been answered. I urge ministers to answer their questions more succinctly so that we can get through more questions more quickly.
With great pleasure, particularly because the opposition seems to have a very inadequate grasp of the tax relief that is being offered. The opposition attacks each round of tax cuts as they come without taking into account the overall context. In the past two years there have been four rounds of tax cuts. The total annual relief arising from those four rounds of tax cuts in two years will be $690 million in 2006-07. That amount will rise to $1.1 billion in 2010-11. Several members interjected. Mr E.S. RIPPER : Members opposite sneer and scoff. The amount of $690 million is how much taxpayers will benefit from in 2006-07 as a result of this government’s four rounds of tax cuts. The latest round will deliver $924 million worth of relief over five years. We will abolish mortgage duty in two stages. That will be a relief to taxpayers of $150 million a year from 2008-09. Average borrowers who take out a $300 000 mortgage will save $750, and a small business - Several members interjected. Mr E.S. RIPPER : The opposition does not seem to care about this. A small business that borrows half a million dollars will save $2 000 in duty. Another tax abolition that I think will also be important to small businesses is that of hiring duty; that is, video stores and retailers that hire out equipment such as lawnmowers and party equipment pay rental duty. That will go. Since the government has come to office, it has committed to abolishing 11 taxes. Each time we do so, the opposition attacks the latest measure as being insufficient and inadequate. Since 2001, the government has committed to abolishing 11 taxes, and to $690 million worth of relief this financial year. Although the federal Liberals are keen to talk about state taxes, the state Liberals are not prepared to talk about federal taxes. There is a problem with taxation in this country; it is a federal tax problem. The glutton at the tax table is the Howard government. Let us look at the facts for Western Australia. I will be generous to the commonwealth and count the goods and services tax as a state tax, even though it is levied by the commonwealth, according to commonwealth law. For the purpose of this analysis, Western Australians pay $3 967 in state taxes per capita, but $10 876 per capita in commonwealth taxes. In this state, the commonwealth tax take per capita is almost three times the state tax take per capita. There is a problem with tax reform in this country; it is a federal tax reform issue. For example, the very high tax rates that people face when they seek to move from welfare to work are disgraceful. Everyone in this house should be angry at the fact that we are discouraging people from moving off our welfare rolls and into work because of the very high effective commonwealth tax rates. That is a problem that Peter Costello needs to attend to. When I go to Canberra later this week for the Treasurer’s conference, I will say to Peter Costello, “Don’t focus on state taxes; focus on the real problem. Focus on federal taxes; focus on those poor people moving from welfare to work, who face very, very high rates of taxation”, because Peter Costello will not grasp the reform nettle and will not reform commonwealth taxation. The SPEAKER : Members, the following comments are directed mainly at members of the ministry. Question time has been going for almost 35 minutes, during which time only six questions have been answered. I urge ministers to answer their questions more succinctly so that we can get through more questions more quickly.
Several members interjected. Mr E.S. RIPPER : Members opposite sneer and scoff. The amount of $690 million is how much taxpayers will benefit from in 2006-07 as a result of this government’s four rounds of tax cuts. The latest round will deliver $924 million worth of relief over five years. We will abolish mortgage duty in two stages. That will be a relief to taxpayers of $150 million a year from 2008-09. Average borrowers who take out a $300 000 mortgage will save $750, and a small business - Several members interjected. Mr E.S. RIPPER : The opposition does not seem to care about this. A small business that borrows half a million dollars will save $2 000 in duty. Another tax abolition that I think will also be important to small businesses is that of hiring duty; that is, video stores and retailers that hire out equipment such as lawnmowers and party equipment pay rental duty. That will go. Since the government has come to office, it has committed to abolishing 11 taxes. Each time we do so, the opposition attacks the latest measure as being insufficient and inadequate. Since 2001, the government has committed to abolishing 11 taxes, and to $690 million worth of relief this financial year. Although the federal Liberals are keen to talk about state taxes, the state Liberals are not prepared to talk about federal taxes. There is a problem with taxation in this country; it is a federal tax problem. The glutton at the tax table is the Howard government. Let us look at the facts for Western Australia. I will be generous to the commonwealth and count the goods and services tax as a state tax, even though it is levied by the commonwealth, according to commonwealth law. For the purpose of this analysis, Western Australians pay $3 967 in state taxes per capita, but $10 876 per capita in commonwealth taxes. In this state, the commonwealth tax take per capita is almost three times the state tax take per capita. There is a problem with tax reform in this country; it is a federal tax reform issue. For example, the very high tax rates that people face when they seek to move from welfare to work are disgraceful. Everyone in this house should be angry at the fact that we are discouraging people from moving off our welfare rolls and into work because of the very high effective commonwealth tax rates. That is a problem that Peter Costello needs to attend to. When I go to Canberra later this week for the Treasurer’s conference, I will say to Peter Costello, “Don’t focus on state taxes; focus on the real problem. Focus on federal taxes; focus on those poor people moving from welfare to work, who face very, very high rates of taxation”, because Peter Costello will not grasp the reform nettle and will not reform commonwealth taxation. The SPEAKER : Members, the following comments are directed mainly at members of the ministry. Question time has been going for almost 35 minutes, during which time only six questions have been answered. I urge ministers to answer their questions more succinctly so that we can get through more questions more quickly.
Mr E.S. RIPPER : Members opposite sneer and scoff. The amount of $690 million is how much taxpayers will benefit from in 2006-07 as a result of this government’s four rounds of tax cuts. The latest round will deliver $924 million worth of relief over five years. We will abolish mortgage duty in two stages. That will be a relief to taxpayers of $150 million a year from 2008-09. Average borrowers who take out a $300 000 mortgage will save $750, and a small business - Several members interjected. Mr E.S. RIPPER : The opposition does not seem to care about this. A small business that borrows half a million dollars will save $2 000 in duty. Another tax abolition that I think will also be important to small businesses is that of hiring duty; that is, video stores and retailers that hire out equipment such as lawnmowers and party equipment pay rental duty. That will go. Since the government has come to office, it has committed to abolishing 11 taxes. Each time we do so, the opposition attacks the latest measure as being insufficient and inadequate. Since 2001, the government has committed to abolishing 11 taxes, and to $690 million worth of relief this financial year. Although the federal Liberals are keen to talk about state taxes, the state Liberals are not prepared to talk about federal taxes. There is a problem with taxation in this country; it is a federal tax problem. The glutton at the tax table is the Howard government. Let us look at the facts for Western Australia. I will be generous to the commonwealth and count the goods and services tax as a state tax, even though it is levied by the commonwealth, according to commonwealth law. For the purpose of this analysis, Western Australians pay $3 967 in state taxes per capita, but $10 876 per capita in commonwealth taxes. In this state, the commonwealth tax take per capita is almost three times the state tax take per capita. There is a problem with tax reform in this country; it is a federal tax reform issue. For example, the very high tax rates that people face when they seek to move from welfare to work are disgraceful. Everyone in this house should be angry at the fact that we are discouraging people from moving off our welfare rolls and into work because of the very high effective commonwealth tax rates. That is a problem that Peter Costello needs to attend to. When I go to Canberra later this week for the Treasurer’s conference, I will say to Peter Costello, “Don’t focus on state taxes; focus on the real problem. Focus on federal taxes; focus on those poor people moving from welfare to work, who face very, very high rates of taxation”, because Peter Costello will not grasp the reform nettle and will not reform commonwealth taxation. The SPEAKER : Members, the following comments are directed mainly at members of the ministry. Question time has been going for almost 35 minutes, during which time only six questions have been answered. I urge ministers to answer their questions more succinctly so that we can get through more questions more quickly.
Several members interjected. Mr E.S. RIPPER : The opposition does not seem to care about this. A small business that borrows half a million dollars will save $2 000 in duty. Another tax abolition that I think will also be important to small businesses is that of hiring duty; that is, video stores and retailers that hire out equipment such as lawnmowers and party equipment pay rental duty. That will go. Since the government has come to office, it has committed to abolishing 11 taxes. Each time we do so, the opposition attacks the latest measure as being insufficient and inadequate. Since 2001, the government has committed to abolishing 11 taxes, and to $690 million worth of relief this financial year. Although the federal Liberals are keen to talk about state taxes, the state Liberals are not prepared to talk about federal taxes. There is a problem with taxation in this country; it is a federal tax problem. The glutton at the tax table is the Howard government. Let us look at the facts for Western Australia. I will be generous to the commonwealth and count the goods and services tax as a state tax, even though it is levied by the commonwealth, according to commonwealth law. For the purpose of this analysis, Western Australians pay $3 967 in state taxes per capita, but $10 876 per capita in commonwealth taxes. In this state, the commonwealth tax take per capita is almost three times the state tax take per capita. There is a problem with tax reform in this country; it is a federal tax reform issue. For example, the very high tax rates that people face when they seek to move from welfare to work are disgraceful. Everyone in this house should be angry at the fact that we are discouraging people from moving off our welfare rolls and into work because of the very high effective commonwealth tax rates. That is a problem that Peter Costello needs to attend to. When I go to Canberra later this week for the Treasurer’s conference, I will say to Peter Costello, “Don’t focus on state taxes; focus on the real problem. Focus on federal taxes; focus on those poor people moving from welfare to work, who face very, very high rates of taxation”, because Peter Costello will not grasp the reform nettle and will not reform commonwealth taxation. The SPEAKER : Members, the following comments are directed mainly at members of the ministry. Question time has been going for almost 35 minutes, during which time only six questions have been answered. I urge ministers to answer their questions more succinctly so that we can get through more questions more quickly.
Mr E.S. RIPPER : The opposition does not seem to care about this. A small business that borrows half a million dollars will save $2 000 in duty. Another tax abolition that I think will also be important to small businesses is that of hiring duty; that is, video stores and retailers that hire out equipment such as lawnmowers and party equipment pay rental duty. That will go. Since the government has come to office, it has committed to abolishing 11 taxes. Each time we do so, the opposition attacks the latest measure as being insufficient and inadequate. Since 2001, the government has committed to abolishing 11 taxes, and to $690 million worth of relief this financial year. Although the federal Liberals are keen to talk about state taxes, the state Liberals are not prepared to talk about federal taxes. There is a problem with taxation in this country; it is a federal tax problem. The glutton at the tax table is the Howard government. Let us look at the facts for Western Australia. I will be generous to the commonwealth and count the goods and services tax as a state tax, even though it is levied by the commonwealth, according to commonwealth law. For the purpose of this analysis, Western Australians pay $3 967 in state taxes per capita, but $10 876 per capita in commonwealth taxes. In this state, the commonwealth tax take per capita is almost three times the state tax take per capita. There is a problem with tax reform in this country; it is a federal tax reform issue. For example, the very high tax rates that people face when they seek to move from welfare to work are disgraceful. Everyone in this house should be angry at the fact that we are discouraging people from moving off our welfare rolls and into work because of the very high effective commonwealth tax rates. That is a problem that Peter Costello needs to attend to. When I go to Canberra later this week for the Treasurer’s conference, I will say to Peter Costello, “Don’t focus on state taxes; focus on the real problem. Focus on federal taxes; focus on those poor people moving from welfare to work, who face very, very high rates of taxation”, because Peter Costello will not grasp the reform nettle and will not reform commonwealth taxation. The SPEAKER : Members, the following comments are directed mainly at members of the ministry. Question time has been going for almost 35 minutes, during which time only six questions have been answered. I urge ministers to answer their questions more succinctly so that we can get through more questions more quickly.
Although the federal Liberals are keen to talk about state taxes, the state Liberals are not prepared to talk about federal taxes. There is a problem with taxation in this country; it is a federal tax problem. The glutton at the tax table is the Howard government. Let us look at the facts for Western Australia. I will be generous to the commonwealth and count the goods and services tax as a state tax, even though it is levied by the commonwealth, according to commonwealth law. For the purpose of this analysis, Western Australians pay $3 967 in state taxes per capita, but $10 876 per capita in commonwealth taxes. In this state, the commonwealth tax take per capita is almost three times the state tax take per capita. There is a problem with tax reform in this country; it is a federal tax reform issue. For example, the very high tax rates that people face when they seek to move from welfare to work are disgraceful. Everyone in this house should be angry at the fact that we are discouraging people from moving off our welfare rolls and into work because of the very high effective commonwealth tax rates. That is a problem that Peter Costello needs to attend to. When I go to Canberra later this week for the Treasurer’s conference, I will say to Peter Costello, “Don’t focus on state taxes; focus on the real problem. Focus on federal taxes; focus on those poor people moving from welfare to work, who face very, very high rates of taxation”, because Peter Costello will not grasp the reform nettle and will not reform commonwealth taxation. The SPEAKER : Members, the following comments are directed mainly at members of the ministry. Question time has been going for almost 35 minutes, during which time only six questions have been answered. I urge ministers to answer their questions more succinctly so that we can get through more questions more quickly.
The SPEAKER : Members, the following comments are directed mainly at members of the ministry. Question time has been going for almost 35 minutes, during which time only six questions have been answered. I urge ministers to answer their questions more succinctly so that we can get through more questions more quickly.

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