The Treasury Department has long been sounding the alarm about Tasmania’s spiralling debt. Our credit rating has been downgraded. The International Monetary Fund is talking about Canberra bailing us out. And add the economic shock from war in the Middle East.
The Treasurer’s response has largely been dismissal and denial.
That is not good enough for Tasmanians today, and it is a betrayal of the Tasmanians of tomorrow.
The chorus calling for this government to STOP – take evasive action – pull all levers now – has been deafening.
We need to step up, accept our situation, be the fiscal adults in the room, be the better economic managers and talk about fair share revenue-raising.
So, fare’s fare. Here’s what should be on the table.
- Mining royalties – Tasmania’s percentage take is almost half of the national average. That’s $42 million we just let slip every year because we can’t ask for the same rate as mainland states get for themselves.
- Aquaculture – Big salmon is dominated by multinationals, profiting from our waterways. But fare’s fare. The public deserves a meaningful return from the use of our waterways, a fair tax on salmon profits.
- Payroll tax – Broaden the base by lowering the threshold, which is currently the highest of any state. A high threshold does not help create jobs. But lowering the threshold will ensure large employers contribute fairly.
- Motor vehicle duty – A higher duty on the purchase of vehicles valued above, say, $100,000 is a targeted, progressive measure. Fare’s fare. People who can buy luxury vehicles can and should contribute some more.
- Gaming – End gaming venue payroll tax rebate for a start.
Tasmanians are not naive. They understand that hard decisions are coming. They will accept difficult choices if those choices are honest, fair, and shared.