Mr Michel questions the Premier about the potential impact of Productivity Commission recommendations to cut or abolish tax concessions for regional housing in WA, and seeks assurances from the federal government. The Premier condemns the proposed changes and urges the federal government to rule them out.

AnsweredQoN 829Legislative Assembly
Asked
25 September 2019
Portfolio
Premier

QuestionView source ↗

HOUSING —
REGIONAL WESTERN AUSTRALIA — TAX CONCESSIONS
829. Mr K.J.J. MICHEL to the Premier:
I
refer to the recommendations of the Productivity Commission that would see tax
concessions for housing in regional Western Australian either cut or
completely abolished.
(1) Can the
Premier outline to the house what this would mean for the future of regional
towns in Western Australia?
(2) Can the
Premier advise the house about what assurances he has received from the federal
government that these damaging tax hikes will not be imposed on my community?

AnswerView source ↗

(1)–(2) I
thank the member for Pilbara for the question, and for being one of the first
people to condemn what the Productivity Commission called for a few weeks ago.
The Productivity Commission's draft report ''Remote Area Tax Concessions and Payments'' suggested a number
of changes. It called for tax exemptions the be scrapped on housing
owned or leased by employers in remote areas, and for the federal government to
impose a 50 per cent fringe benefits tax on businesses. The main region in the
entirety of Australia that would be impacted by this proposed change is the
Pilbara. It would mean the Pilbara, followed by the goldfields and other areas across Western Australia, would be
dramatically impacted and therefore this tax change on employers would
incentivise them not to have a local workforce. It would mean efforts to grow and maintain a local workforce in regional
communities would be harmed and it would promote additional incentives
for fly in, fly out operations on resources projects. It is anti–regional
Western Australia and anti–regional towns in Western Australia, and it
is strange that the Productivity Commission would even suggest these changes
that would impact the state that provides the greatest amount of revenue to the
commonwealth government.
Mrs L.M. Harvey : Didn't
the minister kill it?
Mr M. McGOWAN : Listen: the
federal government has not categorically ruled it out. The federal Treasurer,
Mr Frydenberg, has said that it is a draft. He said —
� the report into
remote area tax assistance by the PC is only a draft with the final report
expected early next year �
He then went on to
indicate, and I quote —
� the Morrison
Government was ''absolutely committed'' to the mining industry
and the thousands of Australians it employed in regional and remote Australia.
That is not ruling it out.
Several members interjected.
The SPEAKER : Members!
Mr M. McGOWAN : Members
opposite need to get a basic understanding of the English language.
Ms L. Mettam interjected.
The SPEAKER : Member for
Vasse, please.
Mr
M. McGOWAN : The commonwealth
government has not ruled out these changes. I note the state Liberal Party has been silent on the matter.
Mr A. Krsticevic interjected.
The SPEAKER : Member for
Carine, I call you to order for the first time.
Mr M. McGOWAN : We need to
join the member for Pilbara in indicating to the federal government that these proposed changes by its federal Productivity
Commission would impact on regional communities in Western Australia, damage our regional communities in Western Australia and promote more people
living in the city, as opposed to living in regional Western Australia. Whilst
I hear the state Liberal Party defending it —
Mr Z.R.F. Kirkup interjected.
The SPEAKER : Manager of
opposition business!
Mr M. McGOWAN : — our
view is that this is something we should all oppose in the interests of
regional Western Australia, and my government will continue to do so. I call on
the Morrison government to provide an unequivocal commitment that it will not
happen.

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