❓ A WA parliamentary question addresses the state's reliance on property taxes, the impact of stamp duties, and the disparity between stamp duty on property versus share purchases. The government acknowledges the issue but cites constitutional constraints and prior agreements.
AnsweredQoN 432Legislative Council
QuestionView source ↗
(1) Property owners currently provide 25.5 per cent of the Government’s taxation revenue through stamp duties, land tax and metropolitan region improvement tax. (1) Does the Government intend to fix the tax mix to more equally share the taxation burden to other asset owners? (2) Will the Government commit to removing the burden of stamp duties that impede the efficient allocation of resources and limit Western Australia’s competitiveness? (3) Can the Government justify the fact that no stamp duty is payable on share purchases, while there is stamp duty on property purchases? Hon N.D. GRIFFITHS
AnswerView source ↗
I thank the member for some notice of this question. (1) State Governments have access to relatively few tax bases, reflecting in part the constitutional constraints on States’ taxing powers. Real property is one of the few relatively few broad tax bases available to the States, so it would not be feasible to substantially reduce our reliance on this revenue source. Nevertheless, I expect that the appropriate mix of state taxes will be one of the issues to be examined in the Government’s forthcoming review of state business taxes. (2) In keeping with the intergovernmental agreement on the reform of commonwealth-state financial relations entered into by the previous Government, the Government intends reviewing the need to retain the more narrowly based stamp duties such as those on cheques, leases and unlisted shares by 2005. However, this needs to be balanced against the need for responsible financial management - a difficult balancing act, given the precarious budgetary position inherited from the previous Government. We remain committed to maintaining Western Australia’s tax competitiveness. (3) Stamp duty still applies to the transfer of unlisted shares. The abolition of stamp duty on listed shares from 1 July this year was a direct outcome of the intergovernmental agreement on the reform of commonwealth-state financial arrangements entered into by the previous Government.
(1) Does the Government intend to fix the tax mix to more equally share the taxation burden to other asset owners? (2) Will the Government commit to removing the burden of stamp duties that impede the efficient allocation of resources and limit Western Australia’s competitiveness? (3) Can the Government justify the fact that no stamp duty is payable on share purchases, while there is stamp duty on property purchases? Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1) State Governments have access to relatively few tax bases, reflecting in part the constitutional constraints on States’ taxing powers. Real property is one of the few relatively few broad tax bases available to the States, so it would not be feasible to substantially reduce our reliance on this revenue source. Nevertheless, I expect that the appropriate mix of state taxes will be one of the issues to be examined in the Government’s forthcoming review of state business taxes. (2) In keeping with the intergovernmental agreement on the reform of commonwealth-state financial relations entered into by the previous Government, the Government intends reviewing the need to retain the more narrowly based stamp duties such as those on cheques, leases and unlisted shares by 2005. However, this needs to be balanced against the need for responsible financial management - a difficult balancing act, given the precarious budgetary position inherited from the previous Government. We remain committed to maintaining Western Australia’s tax competitiveness. (3) Stamp duty still applies to the transfer of unlisted shares. The abolition of stamp duty on listed shares from 1 July this year was a direct outcome of the intergovernmental agreement on the reform of commonwealth-state financial arrangements entered into by the previous Government.
(2) Will the Government commit to removing the burden of stamp duties that impede the efficient allocation of resources and limit Western Australia’s competitiveness? (3) Can the Government justify the fact that no stamp duty is payable on share purchases, while there is stamp duty on property purchases? Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1) State Governments have access to relatively few tax bases, reflecting in part the constitutional constraints on States’ taxing powers. Real property is one of the few relatively few broad tax bases available to the States, so it would not be feasible to substantially reduce our reliance on this revenue source. Nevertheless, I expect that the appropriate mix of state taxes will be one of the issues to be examined in the Government’s forthcoming review of state business taxes. (2) In keeping with the intergovernmental agreement on the reform of commonwealth-state financial relations entered into by the previous Government, the Government intends reviewing the need to retain the more narrowly based stamp duties such as those on cheques, leases and unlisted shares by 2005. However, this needs to be balanced against the need for responsible financial management - a difficult balancing act, given the precarious budgetary position inherited from the previous Government. We remain committed to maintaining Western Australia’s tax competitiveness. (3) Stamp duty still applies to the transfer of unlisted shares. The abolition of stamp duty on listed shares from 1 July this year was a direct outcome of the intergovernmental agreement on the reform of commonwealth-state financial arrangements entered into by the previous Government.
(3) Can the Government justify the fact that no stamp duty is payable on share purchases, while there is stamp duty on property purchases? Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1) State Governments have access to relatively few tax bases, reflecting in part the constitutional constraints on States’ taxing powers. Real property is one of the few relatively few broad tax bases available to the States, so it would not be feasible to substantially reduce our reliance on this revenue source. Nevertheless, I expect that the appropriate mix of state taxes will be one of the issues to be examined in the Government’s forthcoming review of state business taxes. (2) In keeping with the intergovernmental agreement on the reform of commonwealth-state financial relations entered into by the previous Government, the Government intends reviewing the need to retain the more narrowly based stamp duties such as those on cheques, leases and unlisted shares by 2005. However, this needs to be balanced against the need for responsible financial management - a difficult balancing act, given the precarious budgetary position inherited from the previous Government. We remain committed to maintaining Western Australia’s tax competitiveness. (3) Stamp duty still applies to the transfer of unlisted shares. The abolition of stamp duty on listed shares from 1 July this year was a direct outcome of the intergovernmental agreement on the reform of commonwealth-state financial arrangements entered into by the previous Government.
Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1) State Governments have access to relatively few tax bases, reflecting in part the constitutional constraints on States’ taxing powers. Real property is one of the few relatively few broad tax bases available to the States, so it would not be feasible to substantially reduce our reliance on this revenue source. Nevertheless, I expect that the appropriate mix of state taxes will be one of the issues to be examined in the Government’s forthcoming review of state business taxes. (2) In keeping with the intergovernmental agreement on the reform of commonwealth-state financial relations entered into by the previous Government, the Government intends reviewing the need to retain the more narrowly based stamp duties such as those on cheques, leases and unlisted shares by 2005. However, this needs to be balanced against the need for responsible financial management - a difficult balancing act, given the precarious budgetary position inherited from the previous Government. We remain committed to maintaining Western Australia’s tax competitiveness. (3) Stamp duty still applies to the transfer of unlisted shares. The abolition of stamp duty on listed shares from 1 July this year was a direct outcome of the intergovernmental agreement on the reform of commonwealth-state financial arrangements entered into by the previous Government.
I thank the member for some notice of this question. (1) State Governments have access to relatively few tax bases, reflecting in part the constitutional constraints on States’ taxing powers. Real property is one of the few relatively few broad tax bases available to the States, so it would not be feasible to substantially reduce our reliance on this revenue source. Nevertheless, I expect that the appropriate mix of state taxes will be one of the issues to be examined in the Government’s forthcoming review of state business taxes. (2) In keeping with the intergovernmental agreement on the reform of commonwealth-state financial relations entered into by the previous Government, the Government intends reviewing the need to retain the more narrowly based stamp duties such as those on cheques, leases and unlisted shares by 2005. However, this needs to be balanced against the need for responsible financial management - a difficult balancing act, given the precarious budgetary position inherited from the previous Government. We remain committed to maintaining Western Australia’s tax competitiveness. (3) Stamp duty still applies to the transfer of unlisted shares. The abolition of stamp duty on listed shares from 1 July this year was a direct outcome of the intergovernmental agreement on the reform of commonwealth-state financial arrangements entered into by the previous Government.
(1) State Governments have access to relatively few tax bases, reflecting in part the constitutional constraints on States’ taxing powers. Real property is one of the few relatively few broad tax bases available to the States, so it would not be feasible to substantially reduce our reliance on this revenue source. Nevertheless, I expect that the appropriate mix of state taxes will be one of the issues to be examined in the Government’s forthcoming review of state business taxes. (2) In keeping with the intergovernmental agreement on the reform of commonwealth-state financial relations entered into by the previous Government, the Government intends reviewing the need to retain the more narrowly based stamp duties such as those on cheques, leases and unlisted shares by 2005. However, this needs to be balanced against the need for responsible financial management - a difficult balancing act, given the precarious budgetary position inherited from the previous Government. We remain committed to maintaining Western Australia’s tax competitiveness. (3) Stamp duty still applies to the transfer of unlisted shares. The abolition of stamp duty on listed shares from 1 July this year was a direct outcome of the intergovernmental agreement on the reform of commonwealth-state financial arrangements entered into by the previous Government.
(2) In keeping with the intergovernmental agreement on the reform of commonwealth-state financial relations entered into by the previous Government, the Government intends reviewing the need to retain the more narrowly based stamp duties such as those on cheques, leases and unlisted shares by 2005. However, this needs to be balanced against the need for responsible financial management - a difficult balancing act, given the precarious budgetary position inherited from the previous Government. We remain committed to maintaining Western Australia’s tax competitiveness. (3) Stamp duty still applies to the transfer of unlisted shares. The abolition of stamp duty on listed shares from 1 July this year was a direct outcome of the intergovernmental agreement on the reform of commonwealth-state financial arrangements entered into by the previous Government.
(3) Stamp duty still applies to the transfer of unlisted shares. The abolition of stamp duty on listed shares from 1 July this year was a direct outcome of the intergovernmental agreement on the reform of commonwealth-state financial arrangements entered into by the previous Government.
(1) Does the Government intend to fix the tax mix to more equally share the taxation burden to other asset owners? (2) Will the Government commit to removing the burden of stamp duties that impede the efficient allocation of resources and limit Western Australia’s competitiveness? (3) Can the Government justify the fact that no stamp duty is payable on share purchases, while there is stamp duty on property purchases? Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1) State Governments have access to relatively few tax bases, reflecting in part the constitutional constraints on States’ taxing powers. Real property is one of the few relatively few broad tax bases available to the States, so it would not be feasible to substantially reduce our reliance on this revenue source. Nevertheless, I expect that the appropriate mix of state taxes will be one of the issues to be examined in the Government’s forthcoming review of state business taxes. (2) In keeping with the intergovernmental agreement on the reform of commonwealth-state financial relations entered into by the previous Government, the Government intends reviewing the need to retain the more narrowly based stamp duties such as those on cheques, leases and unlisted shares by 2005. However, this needs to be balanced against the need for responsible financial management - a difficult balancing act, given the precarious budgetary position inherited from the previous Government. We remain committed to maintaining Western Australia’s tax competitiveness. (3) Stamp duty still applies to the transfer of unlisted shares. The abolition of stamp duty on listed shares from 1 July this year was a direct outcome of the intergovernmental agreement on the reform of commonwealth-state financial arrangements entered into by the previous Government.
(2) Will the Government commit to removing the burden of stamp duties that impede the efficient allocation of resources and limit Western Australia’s competitiveness? (3) Can the Government justify the fact that no stamp duty is payable on share purchases, while there is stamp duty on property purchases? Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1) State Governments have access to relatively few tax bases, reflecting in part the constitutional constraints on States’ taxing powers. Real property is one of the few relatively few broad tax bases available to the States, so it would not be feasible to substantially reduce our reliance on this revenue source. Nevertheless, I expect that the appropriate mix of state taxes will be one of the issues to be examined in the Government’s forthcoming review of state business taxes. (2) In keeping with the intergovernmental agreement on the reform of commonwealth-state financial relations entered into by the previous Government, the Government intends reviewing the need to retain the more narrowly based stamp duties such as those on cheques, leases and unlisted shares by 2005. However, this needs to be balanced against the need for responsible financial management - a difficult balancing act, given the precarious budgetary position inherited from the previous Government. We remain committed to maintaining Western Australia’s tax competitiveness. (3) Stamp duty still applies to the transfer of unlisted shares. The abolition of stamp duty on listed shares from 1 July this year was a direct outcome of the intergovernmental agreement on the reform of commonwealth-state financial arrangements entered into by the previous Government.
(3) Can the Government justify the fact that no stamp duty is payable on share purchases, while there is stamp duty on property purchases? Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1) State Governments have access to relatively few tax bases, reflecting in part the constitutional constraints on States’ taxing powers. Real property is one of the few relatively few broad tax bases available to the States, so it would not be feasible to substantially reduce our reliance on this revenue source. Nevertheless, I expect that the appropriate mix of state taxes will be one of the issues to be examined in the Government’s forthcoming review of state business taxes. (2) In keeping with the intergovernmental agreement on the reform of commonwealth-state financial relations entered into by the previous Government, the Government intends reviewing the need to retain the more narrowly based stamp duties such as those on cheques, leases and unlisted shares by 2005. However, this needs to be balanced against the need for responsible financial management - a difficult balancing act, given the precarious budgetary position inherited from the previous Government. We remain committed to maintaining Western Australia’s tax competitiveness. (3) Stamp duty still applies to the transfer of unlisted shares. The abolition of stamp duty on listed shares from 1 July this year was a direct outcome of the intergovernmental agreement on the reform of commonwealth-state financial arrangements entered into by the previous Government.
Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1) State Governments have access to relatively few tax bases, reflecting in part the constitutional constraints on States’ taxing powers. Real property is one of the few relatively few broad tax bases available to the States, so it would not be feasible to substantially reduce our reliance on this revenue source. Nevertheless, I expect that the appropriate mix of state taxes will be one of the issues to be examined in the Government’s forthcoming review of state business taxes. (2) In keeping with the intergovernmental agreement on the reform of commonwealth-state financial relations entered into by the previous Government, the Government intends reviewing the need to retain the more narrowly based stamp duties such as those on cheques, leases and unlisted shares by 2005. However, this needs to be balanced against the need for responsible financial management - a difficult balancing act, given the precarious budgetary position inherited from the previous Government. We remain committed to maintaining Western Australia’s tax competitiveness. (3) Stamp duty still applies to the transfer of unlisted shares. The abolition of stamp duty on listed shares from 1 July this year was a direct outcome of the intergovernmental agreement on the reform of commonwealth-state financial arrangements entered into by the previous Government.
I thank the member for some notice of this question. (1) State Governments have access to relatively few tax bases, reflecting in part the constitutional constraints on States’ taxing powers. Real property is one of the few relatively few broad tax bases available to the States, so it would not be feasible to substantially reduce our reliance on this revenue source. Nevertheless, I expect that the appropriate mix of state taxes will be one of the issues to be examined in the Government’s forthcoming review of state business taxes. (2) In keeping with the intergovernmental agreement on the reform of commonwealth-state financial relations entered into by the previous Government, the Government intends reviewing the need to retain the more narrowly based stamp duties such as those on cheques, leases and unlisted shares by 2005. However, this needs to be balanced against the need for responsible financial management - a difficult balancing act, given the precarious budgetary position inherited from the previous Government. We remain committed to maintaining Western Australia’s tax competitiveness. (3) Stamp duty still applies to the transfer of unlisted shares. The abolition of stamp duty on listed shares from 1 July this year was a direct outcome of the intergovernmental agreement on the reform of commonwealth-state financial arrangements entered into by the previous Government.
(1) State Governments have access to relatively few tax bases, reflecting in part the constitutional constraints on States’ taxing powers. Real property is one of the few relatively few broad tax bases available to the States, so it would not be feasible to substantially reduce our reliance on this revenue source. Nevertheless, I expect that the appropriate mix of state taxes will be one of the issues to be examined in the Government’s forthcoming review of state business taxes. (2) In keeping with the intergovernmental agreement on the reform of commonwealth-state financial relations entered into by the previous Government, the Government intends reviewing the need to retain the more narrowly based stamp duties such as those on cheques, leases and unlisted shares by 2005. However, this needs to be balanced against the need for responsible financial management - a difficult balancing act, given the precarious budgetary position inherited from the previous Government. We remain committed to maintaining Western Australia’s tax competitiveness. (3) Stamp duty still applies to the transfer of unlisted shares. The abolition of stamp duty on listed shares from 1 July this year was a direct outcome of the intergovernmental agreement on the reform of commonwealth-state financial arrangements entered into by the previous Government.
(2) In keeping with the intergovernmental agreement on the reform of commonwealth-state financial relations entered into by the previous Government, the Government intends reviewing the need to retain the more narrowly based stamp duties such as those on cheques, leases and unlisted shares by 2005. However, this needs to be balanced against the need for responsible financial management - a difficult balancing act, given the precarious budgetary position inherited from the previous Government. We remain committed to maintaining Western Australia’s tax competitiveness. (3) Stamp duty still applies to the transfer of unlisted shares. The abolition of stamp duty on listed shares from 1 July this year was a direct outcome of the intergovernmental agreement on the reform of commonwealth-state financial arrangements entered into by the previous Government.
(3) Stamp duty still applies to the transfer of unlisted shares. The abolition of stamp duty on listed shares from 1 July this year was a direct outcome of the intergovernmental agreement on the reform of commonwealth-state financial arrangements entered into by the previous Government.
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