State Infrastructure Tax

[SteelPan]

Well...someone has to say it....is it time to introduce a STATE Transport Infrastructure Tax - all funds raised into a "protected fund" only to be distributed, by an independent panel of experts, for major state transport initiatives!

Say 5% more on
ALL Vehicle rego
ALL Transit fares
ALL Tolls
Basically anything and one that moves
Adult Bike riders.....time they paid too!

[SurfRail]

Could be paid for in full by increasing fuel excise, but it won't happen because the Feds control it due to constitutional issues.

[#Metro]

How much money do you want to raise each year??

Higher tax does not automatically mean more revenue, and can mean lower votes too so

it needs to be well thought out.

[Stillwater]

There will need to be a radical rethink of fuel excise, which is a tax on each litre of fuel purchased.  It is indexed to inflation.  As hybrid cars and electric cars become popular, Australia will have to move to a user pays system where drivers play for the distance travelled each year.  The pollies will take some time to get their heads around that because the government that proposes it will be open to accusations from the Opposition that they are planning a BIG NEW TAX.

A state infrastructure tax is an excellent idea.  But the pollies will baulk at it because it will be portrayed by opponents and the media as a BIG NEW TAX. 'Live within our means' and 'reduce the waste' will be the catch cries.  A state infrastructure tax could be an additional surcharge to the council rates notice -- councils collect it and forward it to the state.

Councils will object to that, because they will say the ratepayer backlash to a BIG NEW TAX will be directed at them, not the state government which would require them to collect it.

No matter how sensible the argument, in the current political climate, a reorganisation of taxes just won't happen.

The state government baulked at the idea of a 'betterment tax' on properties around CRR precincts.  In effect, this will be a free kick to the BCC, which will enjoy increased rate revenue off the higher prices for property around those precincts -- due to the fact that CRR will pass below.