Hidden Costs In Review Of Taxes
Newcastle Herald
Tuesday July 15, 2008
A REVIEW of taxation in NSW would result in hidden taxes for Lake Macquarie ratepayers if its recommendations were adopted, a report says.
Lake Macquarie City Council heard last night that the Independent Pricing and Regulatory Panel's draft recommendations would probably lead to an increase in rates of about 33 per cent.The report, by council's external relations specialist Kelly Lofberg, said average rates could rise to more than $800 a year."This is an extraordinary impost on property owners, particularly for renters, who will ultimately be forced to pay higher rents," Ms Lofberg wrote.She forecast an increase in environmental levies, including a tax on energy consumption, if the panel's recommendations were adopted."Using environmental levies as a means of broadening the NSW Government's taxation system and reducing the reliance on federal grants is a dangerous policy position," she said.The source of major criticism by the council of the panel's review was a recommendation to remove local government's exemption from payroll tax, which would put further pressure on the council to recoup the shortfall from ratepayers, the report said.The council's submission will be included as part of the panel's final report to the NSW Treasurer. Lake Macquarie ratepayers will pay more now a new rates structure has been introduced.Lake Macquarie City Council voted on the new rates last night, which are about 6 per cent more than last financial year.
© 2008 Newcastle Herald