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Council rates to rise thanks to Keating's new taxes



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COMMONWEALTH

P A R L IA M E N T A R Y LIBRARY

(PARLIAMENT OF AUSTRALIA"· THE SENATE

SENATOR IAN MACDONALD

- , - LIBERAL SENATOR hOK QUEENSLAND

SHADOW MINISTER FOR LOCAL GOVERNMENT & THE ACT

Council Rates to Rise Thanks to Keating’s New Taxes Councils rates will have to rise as a result of the Fringe Benefits Tax increases announced by the Keating Labor Government yesterday.

Shadow Minister for Local Government, Senator Ian Macdonald, said the FBT increase would be a bitter pill for Councils to swallow, particularly those who were also ignored in the Government's Budget Capital Works Program.

Senator Macdonald said most Councils were struggling to make ends meet, and they could ill-afford this latest Impost from the Keating and Labor.

"Yesterday, Treasurer Dawkins introduced Fringe Benefits Tax increases which will impost heavily on Councils."

"It's estimated that 15% of the $2,5 billion raised, about $400 million, will come from Government sources."

"Local Government will pay a large share of this $400 million."

"While only some Councils were singled out by the Government for funding under the Capital Works -pork-barrelling scheme In marginal seats, all Councils will be slugged with the Fringe Benefits Tax Increase."

"To add insult to Injury, Dawkins has already ruled out any compensation for Local authorities for this tax hike - no hope of the Government increasing grants to Local Government to help them pay this extra cost,"

"Councils will be left with no choice but to increase rates."

Senator Macdonald said that the Keating tax increases would sharpen the difference between Labor and the Coalition on the question of taxes on Local Government.

"The Coalition would abolish Fuel Tax, Payroll Tax, and Training Guarantee Levy, and while we are promising to reduce taxes on Councils, Keating Is tightening the screws on Local Government even further."

17th September 1992

For further comment ohone Senator Macdonald on (060 2773665 / (0771 713066

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