From the editor's desk: Bundy's economy needs a tax break

LATE last year the ATO revealed 36 per cent of the largest public companies and multi-national entities in Australia paid no tax.

BUNDY FOCUS: Deb Frecklington talks about Bundaberg's challenges during a visit to the region earlier this week. Picture: Brian Cassidy

LATE last year the Australian Tax Office revealed 36 per cent of the largest public companies and multi-national entities in Australia paid no tax in the most recent financial year on record.

It appears there are a number of reasons for this.

Highly competitive industries, like aviation, where losses are frequent and capital investment hugely expensive, have largely been exempt. That's why Qantas hasn't been on the taxman's radar.

The declining value of assets is another key reason.

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The complexities of the tax system are well beyond my scope. However, it seems to me that governments have within their power the ability to support industries of their choosing and there are many established precedents for this.

Why would they do this? I'd have thought part of the reason was to keep the businesses operating, and the jobs they create which help drive the nation's economy.

So, why has a proposal this week to drive economic growth in the nation's worst unemployment hotspot been met with such a lack of enthusiasm?

Bundaberg Mayor Jack Dempsey. Picture: mike knott

Earlier this week, Bundaberg Mayor Jack Dempsey announced he would be writing to Prime Minister Malcolm Turnbull seeking company tax relief for businesses in the Bundaberg region.

READ:Bundy Mayor takes tax cut plan to PM.

His call followed the release of another damning State of the Regions report that once again identified the Wide Bay region as an unemployment hotspot.

Our region needs creative solutions to remove itself from the long-held issues that have stymied opportunities.

So what has happened since Cr Dempsey pushed for his tax solution? Our business community has backed the call, but it's been an underwhelming political response.

READ:Business community backs mayor's call for tax relief.

Hinkler MP Keith Pitt initially responded with a list of the projects that the government has funded and followed up with this statement.

"I'm committed to providing tax cuts for all businesses in the Bundaberg region that will create more local jobs, more local investment and more local economic opportunity.

"The Coalition Government has already reduced the tax rate for small business in Bundaberg and our plan to provide tax cuts for all local businesses is being debated right now in the Federal Parliament (this has since been passed).

Nationals MP Keith Pitt. Picture: LUKAS COCH

"While payroll tax is a State Government issue, I have previously stated that it needs to be abolished.”

We've heard nothing from the Queensland Government, which Cr Dempsey also urged to reduce payroll tax in a trial in Bundaberg.

Nothing came out of the PM's office, though the letter may not have arrived yet.

On Monday, I sat down with Queensland's LNP leader Deb Frecklington, who was in Bundaberg pushing her cheaper electricity policy.

READ: Confidence key to tackle Bundy's job woes: LNP leader.

Ms Frecklington certainly speaks a language that's more friendly to the regions than the current Labor government, which is investing huge dollars in the south-east corner (PS: there's an open invite to the region any time you want, Premier Palaszczuk).

Ms Frecklington spoke highly of Cr Dempsey, but was going nowhere near supporting his proposal.

She told me she didn't believe it right to have a different system in Bundy to other areas.

An example was raised of a town that a number of years ago offered incentives for businesses to start up there, but now only one was left.

Her solution was to build confidence in the region and she identified three key areas the LNP would focus attention:

• Cheaper electricity prices;
• Reinstating $400 million for road infrastructure; and
• A hospital upgrade

Reinstating $400 million into road infrastructure is important and needs to happen, but it's not as though we had huge employment when this money was being spent.

Reducing energy costs will certainly help as well. But again, it's not a regional game changer for Bundy.

I think everyone agrees that a new upgraded hospital is critical. This is a big part of the picture for the regional solution and the whole community needs to be singing from the same sheet on this to make sure it happens.

READ:Cashless card one step closer.

The welfare card is another part of the solution. Ms Frecklington was supportive of a regional trial on this issue.

While there are concerns in the community about the card, and the potential impact of stigmatising the region, something has to be done in this space.

But while we're in the space for trials, let's do something in the tax space.

With youth unemployment nearing 30 per cent, we can't sit back and hope. That will only lead to ongoing heartache.