Qld eases tax burden as jobs plummet

The Queensland government has stepped in to ease the tax and rates squeeze on
business, as the state recorded a massive jump in unemployment.
Figures released by the Australian Bureau of Statistics on Thursday showed the
jobless rate rose to 4.4 per cent in January from December's 3.9 per cent - the
highest rise of any state.
Premier Anna Bligh announced land tax and rates relief for 17 local government
areas, as well as an easing of business red tape.
Valuations conducted at the height of the property boom in October, which averaged
69 per cent, would not be issued, she said.
The move could save tens of thousands of dollars for some businesses.
Ms Bligh said councils would decide whether rates should rise, but had less basis
with land values frozen.
"I would say to councils, now is not the time for big rate increases," she told
reporters.
"The Queensland government is looking at foregoing revenue from land tax increases
... I would encourage them not to be looking to other areas to raise rates."
The government will also cut business red tape by requiring water efficiency plans
annually, rather than quarterly, and extend an amnesty on payroll tax penalty
payments.
Opposition Leader Lawrence Springborg said the approach was piecemeal.
Mr Springborg said the extension of the payroll tax amnesty would only give
businesses short-term help, while the most populous areas of Queensland would get no
relief from land tax.
"Ratepayers and land tax payers in the largest council areas, being the Sunshine
Coast, and the Gold Coast and Brisbane, are not going to really receive any relief,"
he told reporters.
"We've basically got winners and losers across Queensland so it really is something
which is not very coherent."
Meanwhile, Brisbane Lord Mayor Campbell Newman said the level of rates increases
could be wound back if the state government agreed to freeze the cost of bulk water
it sold to councils.
"The state government's bulk water charges last year accounted for 40 per cent of
councils' rates bills," Mr Newman said.
Ms Bligh said the charge was not under consideration.
"Bulk water charges are not a tax, they are where you pay for what you use," she said.
The moves were recommended by the government's job squad, a team of industry leaders
tasked with helping the government save the state from growing unemployment.
The squad met for the second time on Thursday.
Australian Industry Group Queensland director Chris Rodwell, a member of the squad,
said the relaxation of the water plans alone would save businesses up to $8,000 each
quarter.
"There will be a sigh of relief from thousands of businesses as a result of these
announcements today and we can't overlook that," Mr Rodwell said.