A Question of TAX....a rise in the GST?....a Bed Tax?

[SteelPan]

It seems to me we can all see the need for significant projects ahead and whilst govt is often inefficient, we still need $$$$$ - we just need to ensure it goes to the pointy end of project delivery!

Do you believe selling a rise in the GST to 12.5% - on the understanding for say 15yrs after it's introduction, all that extra [2.5%] GST would be distributed to the states for TRANSPORT initiatives would be politically doable?

How do you feel about "bed taxes"?

[Stillwater]

INTRODUCE 3x3 TAX

In times past ... some states had a '3x3 tax' -- notably NSW.  A three cents a litre levy on fuel sales for three years.  Initially, motorists complained, but the whole thing got swallowed up in the fuel price cycle and the competitive nature of the business so that, in the end, motorists did not feel its impact.  It is easy to administer -- Feds collect on behalf of the state.  After implementation, initial criticism was directed at fuel companies and the feds (Ms Trad should like that).  But it went away when people started seeing road projects happening, with a '3x3 tax' sign at either end.

To be successful, the guarantee was that 'every cent' raised would be spent on road improvement projects -- usually little things that made a difference, such as new traffic lights, intersection upgrades etc.  AND motorists needed to know that the pain would go away after 3 years.  When it did in NSW, the fuel companies tried to keep the price of fuel artificially high, proving that they are bastards.

It might be time for an overhaul of TIDS and 'Building Better Roads Sooner' components of road upgrades in this state, coupled with introduction of a '3x3 tax' in Queensland.  It is a good tax for this state, given the number of interstate motorists who travel about here.

And, it might make people give up their cars for travel to work and take the train or the bus instead.

EDIT:
The 3x3 fuel levy was introduced in 1989 as a 3 cents per litre (cpl) surcharge on petroleum licence fees. The additional revenue went towards road improvements and road safety.  The legislation underlying this levy was effectively invalidated by a High Court decision in August 1997. Since then, therefore, NSW has not levied licence fees or the 3x3 surcharge.  For 3x3 to work for states, they would have to request the Feds to increase the fuel excise levy it collects (currently about 40 cents a litre) and pass the extra money raised back to the states.

[SurfRail]

Bed taxes are not worth it given the amount you can reasonably impose versus the need to have some accounting machinery in place to collect it.

Generally speaking, we collect plenty of tax - it just isn't spent properly.

[aldonius]

Replace stamp duty with land value tax and then charge somewhat more in LVT than was taken in stamp duty. Also, tighten up some of the CGT loopholes. Tada, now the taxes on property better capture value uplift.

[Stillwater]

Most likely a 'bed tax', or levy, will be introduced, but will be collected by local government.  At Noosa, holiday apartments, hotels etc are identified through the land zoning and accommodation businesses in that zone pay a levy on rates.  Air BandB places can be, and usually are, in zones outside this zoning -- residential zone, and don't pay the levy.  Because they don't pay the levy, their rental charges are that little bit lower, undermining the businesses that do pay.  The legitimate businesses have complained to the council.

http://www.abc.net.au/news/2017-08-18/airbnb-levy-considered-by-queensland-local-councils/8820252

Maybe the state should look to charge an 'infrastructure tax' per household and have councils collect via rate notices (and maybe even keep the money, in exchange for some rationalisation of funding from the state government, such as TIDS money.)

But pollies keep going around promising NO NEW TAXES, while continuing to levy inefficient ones, such as payroll tax.

Most probably that will be Ms Trad's new mantra -- NO NEW TAXES while simultaneously arguing SHOW US THE MONEY from the Feds in the light of GST rationalisation that will see Queensland's share of the consumption tax drop.

Successive Queensland Treasurers push that line to no effect.  Is the best they can come up with this: 'Queensland is in a financial pickle because Canberra doesn't give us enough money'.

And when it comes to mounting sound Business Cases for projects that would attract significant additional money, they are light-on detail, fudged and manipulated, giving rise to the other Queensland mantra: 'Canberra has all the information needed to make a decision in favour of this state'.

There is a need for maturity around this debate, but we won't get it from this government, or Ms Trad.

[#Metro]

How much would each person have to pay to raise say, $10 Billion, which would be enough for 2-3 major projects?

[Stillwater]

The Queensland Government does not give sufficient rigour to issues of taxation and revenue-raising, particularly in relation to its interaction with the Commonwealth.  It seems to think it is automatically entitled to a pre-determined or fixed proportion of whatever money is on offer, and the process whereby that money is obtained involves a minimum amount of paperwork arguing, essentially, GIVE US OUR MONEY.

Currently the Productivity Commission is looking into the formula that carves up the GST revenue and has sought submissions from the States.

Queensland has put in a 14-page 'draft' submission, dated December 2017, while other states have argued their case more forcefully, with back-up facts and figures.

Queensland submission:
https://www.pc.gov.au/__data/assets/pdf_file/0018/223650/subdr106-horizontal-fiscal-equalisation.pdf

New South Wales submission:
https://www.pc.gov.au/__data/assets/pdf_file/0013/224005/subdr109-horizontal-fiscal-equalisation.pdf

Victoria submission:
https://www.pc.gov.au/__data/assets/pdf_file/0019/220366/sub053-horizontal-fiscal-equalisation.pdf

At stake is a loss of revenue to Queensland exceeding $1b annually.  You would have thought the state would have put in a bit more effort.  Still, Queenslanders can always shout WE WAS ROBBED when the Productivity Commission is swayed by more persuasive argument from the other states.

[ozbob]

 

[techblitz]

wrong area of focus.....TFT(tax free threshold) is where the real discussion needs to happen...