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Local government funds

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PRESS RELEASE V A U S T R A L IA . , i t V A U S T R A L IA . ( P Senator Peter Rae, Shadow Minister for Finance.


29 March 1985 No. 19/85


The Government was today criticised by the Shadow Minister for Finance, Senator Peter Rae, for its proposal to slash the level of taxation flow-on to Local Government Authorities. Senator Rae pointed out that this was in

direct contradiction to the ALP's stated policy commitments to maintain the payment of 2%. of personal tax revenue to local government. :

The Minister for Finance, Senator Walsh, had earlier told the Senate that the increase in personal tax will increase so dramatically that a 2% share would increase the actual payment to local government by 20%. He said that such an increase was unjustified and that his Government would withhold payment of the full 2%.

"This is a measure of this Government's huge actual increase in personal tax, its preparedness to plunder the public purse, its preparedness to pocket the plunder, its indifference to the plight of property owners, who already pay hefty, rates and land taxes, and its selfishness towards

local government", Senator Rae said.

Senator Rae challenged the Finance Minister's contention that? local councils had not attempted to increase their own levels of revenue. "The fact is that the figures prove that the ’ Minister misled the Senate.

"The Government's proposed actions will result in higher rates charges, and also increases in the cost of rental housing when the Government should be endeavouring to reduce such charges and inflationary pressures", Senator Rae said.

Contact : Henry Bray. (062) 726532.