POPULAR WORDS

Queensland Treasurer Terry Mackenroth has officially backed down on his hardline stance against business tax reform by agreeing to a six-year plan to abolish business levies. However, industry leaders are angry that the "biggest card of all" - stamp duties on business conveyances - is not part of the deal. In a proposal signed by state and territory Treasurers - excluding NSW and WA - the Ministers have told federal Treasurer Peter Costello they "are prepared to commit to the abolition of further taxes over the period to 2010-11". The Treasurers insist revenue lost from the tax cuts "should be included in the calculation of the ‘guaranteed minimum amount (GMA)'" of GST payments to the states. Mackenroth has consistently told QBR there was never a requirement to cut taxes under the Intergovernmental Agreement signed to pave the way for the introduction of the GST, instead telling industry leaders the extra revenue will go to health and education. But he told parliament yesterday the government is now prepared to "forego" tax revenue of $42 million in 2005/06 and up to $558 million in 2010-11. "Our tax cut package will deliver huge benefits to Queensland business and will give our economy significant impetus that will benefit the wider community," he says. However, Mackenroth says they will not be removing business conveyances on real property – on "administrative and public policy grounds, we do not support treating stamp duty on business properties more favourably than residential properties". Property Council Queensland executive director Robert Walker says by retaining the levy, the government has missed out on removing "the biggest deadweight tax of them all". "It comes as a shock because ultimately it was the states that put business stamp duties and property transactions at the top of the list," he says. "The government is now receiving enough money to abolish over time all those taxes including stamp duty on property taxes. Mackenroth stated in March land tax cuts would be considered based on current taxation levels, however he could not be contacted to clarify if these tax cuts altered his position. Walker says any move to link the two issues is a "cop out". "They've got significant room to ease the burden of land tax but also commit to reducing stamp duty," he says.