Commentary
Queensland’s government has proclaimed that in the spirit of the state’s long-standing fiscal tradition, it is committed to “no new or increased taxes” and to its tax take being below the average of other states.
Taxpayers would be relieved to hear of this commitment. But it is difficult to reconcile with the Queensland government’s recent tax policy actions, which have included a new payroll tax levy and a new land tax provision—not to mention a large hike in coal royalties which, although not technically a tax, certainly feels like one to those paying it.
The key to this contradiction is that the “no new or increased taxes” commitment is subject to so many and such malleable escape clauses that it is worthless. Taxpayers can take no comfort from it….