Australian Federal Government Rejects Land Tax Claim

by Mary Swire, Tax-News.com, Hong Kong

24 January 2003

Speaking in Sydney this week, former head of the National Farmers' Federation, Rick Farley called upon the Australian federal government to impose an environmental tax in order to cover the cost of reforming land practices and regulating natural resources.

Environmental and farming groups have argued that farmers should not have to bear the cost of ending practices such as land clearing alone:

'An environmental levy would share the costs of environmental reform around the community,' current NFF chief, Peter Corish observed, following Mr Farley's Australia Day speech.

However, the federal government has abdicated responsibility for such issues, arguing that they are the ultimate responsibility of the State authorities. Reporting on the debate on Thursday, the ABC news service quoted Deputy Prime Minister, John Anderson as announcing that:

'It is a desire to see the federal government impose taxes to meet what are clearly state responsibilities - it isn't going to work like that. The states get the federal funding flow they need through mechanisms and instruments such as the national competition policy payments.'

'They've showed a total reluctance to spend it and what you're seeing here is the mastery of spin over substance.'

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