The Australian Local Government Association (ALGA) has welcomed the release of the Commonwealth’s Tax Discussion Paper and the process to review the way Australia’s taxation revenue is collected.
“All levels of government and the community need to be involved in the review of taxation, and in looking at how we raise and distribute the tax revenue we need to deliver the services and infrastructure our communities need and want,” said ALGA President Mayor Troy Pickard.
“Local Government raises about 3 percent of taxes through local rates and it is important that we maintain the integrity of the rates system by protecting it from encroachment by other levels of government which want to use property rates or levies to fund their services, and by ensuring that any rate exemptions granted to not for profit bodies can be justified and are in the community’s interests.
“Australia’s current tax system is not serving local communities well.
“Generally, local government as a whole is raising as much revenue as can be reasonably expected through its own tax effort.
“Grants from other levels of government are an important revenue source to help councils meet community needs.
“Those grants have been falling as a proportion of tax revenue and communities are feeling the squeeze.
“A comprehensive review of the tax system, in parallel with a review of how the Federation should work, is essential.”
Mayor Pickard said local government will play an active part in the Tax Review, calling for a fair share of total taxation revenue for local government and highlighting the efficiency and effectiveness of councils in delivering services.
“ALGA will be making a submission on the Tax Discussion Paper and will be involved throughout the rest of the process to develop the White Paper on Taxation.
“We need a reformed tax system which can meet the needs of all Australian’s into the future in a way which is simple, fair and durable.”
