THE tax review in Canberra reveals an interesting dichotomy between groups. It appears that the politicians and those with vested interests are on one side of the room, with those believing in tax reform isolated on the other. The politicians appear to be looking for ways to avoid implementing any of the suggestions by Ken Henry, and those representing interest groups seem mainly interested in paying less tax. The idea that national interest needs to be put before vested interest is the salient one. Are we able to actually make decisions that allow for steady growth without ignoring or isolating the more needy among us? I keep hoping we will reveal ourselves to be courageous, wise and ethical. I must admit the hope is fading.
Di Johnson, Sassafras
Lone drivers should pay
WELL-PAID bureaucrats and academics go to Canberra for a talkfest on taxes. Included is a congestion tax that will hurt low-income families, pushing prices up and damaging small businesses. In Australian cities, single-occupant cars make up 70 per cent of traffic. Reduce the number of single-occupant cars to reduce congestion and pollution. Aim congestion taxes at single-occupant cars in cities. Exempt commercial vehicles, taxis, motorcycles and scooters. Use the tax on cars to provide protective clothing lockers for riders and to improve public transport.
Damien Codognotto, Independent Riders' Group, Melbourne
Make stamp duty fairer
THE business of raising taxes is always with us but it seems that the people in charge of these processes have blinkers on. Or is it simply that big business and moneyed people really do run the government and "the people" have nothing to do with it? Take stamp duty on house sales. Why isn't it possible to have stamp duty on your home reduced to half (or none for buyers over retirement age), while stamp duty on second and subsequent properties is doubled. Isn't that a fair, support-the-battler type of move?
People of retirement age often want to downsize, but the thought of paying tens of thousands of dollars in stamp duty stops them. Why should anyone sell the family home only to be able to afford a much smaller home because of stamp duty? Surely if you have two or more homes you are better off than the person with one. Great, you want more homes, go for it, but you should pay.
Tom Robb, St Leonards
Plenty of brainpower
I'M STRUGGLING to remember the last time I saw such a clever bunch as that group of minds assembled under Julia Gillard's tutelage in Canberra this week. I watched for a couple of hours on Tuesday night and have to admit to being extremely impressed with the quality of discussion. Will it end up in law? That remains to be seen. But give credit where it's due. Ms Gillard has her head screwed on and knows that being open and inclusive is the best method to get results. I'd like the Treasurer to be a little more forthcoming with the gathered throng. He seems intent on holding his ground while Ms Gillard is somewhat less suspicious.
Arthur Pagonis, Morley, WA
Frequently Asked Questions about this Article…
What was the Canberra tax review discussed in the article and whose ideas were being debated?
The article describes a tax forum in Canberra where experts and politicians debated tax reform ideas, including suggestions by Ken Henry. The event, held under Julia Gillard’s tutelage, brought together academics, bureaucrats and interest groups to discuss possible changes to Australia’s tax settings.
How could a congestion tax affect low-income families and small businesses?
Letters in the article warn that a poorly designed congestion tax could push prices up and hurt small businesses, disproportionately affecting low-income families. The concern is that if the tax increases travel costs without improving alternatives, those on tight budgets would feel the squeeze most.
What targeted congestion tax ideas were suggested to make the policy fairer?
One suggestion was to aim congestion taxes at single-occupant cars in cities, since they account for about 70% of traffic. Proposed exemptions included commercial vehicles, taxis, motorcycles and scooters. Revenue from the tax could be used to improve public transport and provide facilities like protective clothing lockers for riders.
Why is stamp duty on home sales a concern for retirees and everyday homeowners?
The article highlights that high stamp duty can discourage retirees from downsizing because they may face tens of thousands in stamp duty when moving to a smaller home. That financial barrier can trap people in larger houses and reduce housing mobility for ordinary homeowners.
What stamp duty reforms were proposed to help 'battler' homeowners?
A suggested reform was to reduce stamp duty on your primary home (possibly halving it or removing it for buyers over retirement age) while increasing stamp duty on second and subsequent properties. The idea is to make it easier for ordinary homeowners and retirees to move, while charging more to people buying multiple properties.
Will the conversations at the tax forum automatically become law?
Not necessarily. The article notes that the forum featured high-quality discussion and debate, but whether those ideas will end up in law remains uncertain — implementation depends on political will and government decisions.
What worries were raised about politicians and vested interests during the tax discussions?
Several contributors expressed concern that politicians and vested-interest groups may try to avoid implementing Ken Henry’s suggestions, with some interest groups mainly focused on paying less tax. The overarching worry is that national interest might be sidelined in favour of powerful or moneyed interests.
How could revenue from a congestion tax be used to improve transport options for everyday commuters?
The article suggests using congestion tax revenue to fund better public transport and rider amenities — for example, protective clothing lockers for cyclists and scooter riders — which would create practical alternatives to driving and help reduce congestion and pollution.
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