Each edition we feature the views of a State Local Government Association President. The following is from Councillor Ken Pech, President – Western Australian Municipal Association.
Has Local Government an interest in the current debate on Taxation Reform? I say yes, as do all my colleagues. For the Commonwealth Government to say otherwise is reinforcement of the urban myth they are seeking to perpetuate that they are the source of all wisdom and our electors (theirs too) can be ridden over roughshod.
It is unfortunate also that the media only seeks to sensationalise and promote a negative position on anyone who has a contrary view. I am of the opinion that if they (the Commonwealth) do not take heed of Local Government, they are not listening to the people.
If the Government is serious about being re-elected, it should be listening to Local Government. To ignore or to dismiss the views of our electors, who are their electors, is a suicide mission for them. We (Local Government) have not had an answer as to whether we will be zero rated. A GST of 12.5% could cost WA Councils and communities alone up to $118 million.
Our electors will have to pay the difference on top of the normal rates and charges they currently pay. To ensure this does not happen, the Government must assure us that we will be zero rated. To suggest that it could come back in FAGs is rubbish! We all know how inequitable the distribution of grants can be. They are never returned to where they are raised, and are they going to be tied to a set percentage of the tax? I have a feeling Local Government will be ‘scooped up’ with ‘the rest’.
If the Commonwealth Government only realised it could gain support for a GST (or a version thereof) from Local Government, or it could create its worst enemy by Councils opposing it.
If they told the people that essential services such as waste, dog control, traffic management, rates and so forth were not going to be subject to a tax on a tax (GST), and that a guaranteed return of tax in a reform package would be returned to State or Local Governments, they would have the greatest allies they could imagine.
However, if the Commonwealth continues down its present path, the Government is building up an antagonism that suggests it does not want to be re-elected. We all know there are reasons why certain things have to be done that we are not comfortable with or are antagonistic towards. Deep down, we know they are for our long term benefit.
With issues such as commitment to, and the well being we have, towards our communities, it is unbelievable that Local Government is not being listened to. A message has gone out loudly and clearly Australia wide that the Government is not listening. Some people in the Government are defensive; some say ‘wake up’; others ignore us. I say, ‘consider the consequences’.
What is the problem? Tax reform is essential. Why not give adequate resources on a guaranteed basis to State and Local Governments? We are carrying out your (Commonwealth) programs. We (Local Government) are closest to your electors. Everyone wants tax reform, but the Commonwealth will ‘lose it’, particularly in Western Australia, if heed is not taken of the people.
Listen; consider; respond. Do not go defensive. Show leadership and show a commitment to genuine tax reform. This means no taxes on taxes – and reform must encompass a guaranteed share to Local Government and the States to carry out the essential programs that the people, who are your constituents too, see as their right as citizens of Australia.
