NSW government proposes to abolish stamp duty and payroll tax
The New South Wales (NSW) government could abolish stamp duty and payroll tax in the hopes of reviving the economy due to the damage wrought by the COVID-19 pandemic. Unemployment has been forecast to hit 10% by the end of the year and many sectors, especially those of the event industry and any other industry that require a large gathering of people, have been hit hard and show little sign of recovery.
According to Dominic Perrottet, the NSW Treasurer, the plan is to remove inefficient taxes. He was quoted as saying “we are not going to tax our way back into prosperity.” The top task of his plan is the removal of stamp duty, and he intends to focus efforts on maximising productivity, deregulation, digitisation, trade, and investment.
Jodi McKay, leader of the state opposition, stated that she intends to see more details of the proposal but also “we are very much up for this discussion”. She added that she is willing to negotiate in exchange for her support. She also agreed that the state required bold and brave decisions and reform in light of these unprecedented times.
The NSW Shadow Treasurer, Walt Secord, seems to be in agreement, stating that all options are on the table as he refers to a hard early half of 2020 for Australia that contained the bushfire crisis, the downturn in the construction industry, and now the pandemic.
Mr Secord emphasised the plight of citizens, saying that people who were previously stable and had never even set foot in a Centrelink have had to resort to Centrelink for assistance. “I want to work with [Mr Perrottet] to improve the economy, create jobs, attract investment,” he said. He also said “we stand ready to work in partnership.”