The Beattie government will this week introduce legislation to abolish debits tax, saving Queenslanders $190 million a year.
Deputy Premier and Treasurer Terry Mackenroth says State Cabinet this week approved introduction of the
Debits Tax Repeal Bill 2005 to Parliament so the tax can be removed from July 1.
Debits tax is applied to withdrawals made from an account with cheque drawing facilities kept with a financial institution.
Mackenroth says the tax cut will ensure Queenslanders continue to pay less than the average Australian.
"In 2004/05, Queenslanders are expected to pay $1,689 per capita in tax, compared to the average of $2,082 for the other states and territories," he says.
"In the State Budget last year, we said we would abolish debits tax and now we are honouring that commitment."
Mackenroth says the government is also committed to abolish a range of other business duties during the next six years as part of the GST agreement with the Commonwealth.
"The Beattie government has put forward a proposal to federal Treasurer Peter Costello to cut six duties and forgo revenue starting from $42 million in 2005/06 to a massive $558 million in 2010/11," he says.
These include:
- stamp duty on non-quotable marketable securities
- stamp duty on leases
- stamp duty on mortgages, bonds, debentures and other loan securities
- stamp duty on credit arrangements, instalment purchase arrangements and rental arrangements
- stamp duty on cheques, bills of exchange and promissory notes
- stamp duty on business conveyances other than real property, such as goodwill, supply rights of a business and intellectual property.
"In aggregate, the removal of these duties will be worth more than $1.6 billion over six years," he says.