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Sydney will boom as safe haven for investors: Premier

Gladys Berejiklian believes there is an appetite to embark on major tax reform — such as GST, payroll tax or stamp duty overhauls — in the next 12 months.

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Gladys Berejiklian believes there is an appetite to embark on major tax reform — such as GST, payroll tax or stamp duty overhauls — in the next 12 months.

It comes as the Premier revealed her vision for NSW to emerge as a “safe haven” for international investors, saying Sydney would trump cities like London and New York for deals in the coming months as a result of our superior handling of the virus.

NSW Premier Gladys Berejiklian on Tuesday. Picture: Justin Lloyd
NSW Premier Gladys Berejiklian on Tuesday. Picture: Justin Lloyd

In an interview, the Premier revealed her plans for the NSW economy to bounce back, saying she believed the pandemic had opened the door to major reforms.

In her strongest remarks to date on tax overhauls, she said she believes the pandemic now allowed for “bold and courageous decision making”.

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“Tax reform isn’t something top of mind for people right now but it has to be top of mind for decision-makers — we need to save the budget, save the economy and we need to think of how we can inspire our citizens to feel less burdened and feel comfortable in spending and how we can best use the dollars we get through taxation.”

Asked if she wanted to increase the GST, she answered by saying, “I want what’s best for our citizens”, adding “NSW prides itself on being low-tax, high-efficiency and boosting the private sector — no system is a better system unless it reduces burden”.

Mirvac CEO Susan Lloyd-Hurwitz and NSW Treasurer Dominic Perrottet in a physically distanced topping out at the Pavilions building site at Sydney Olympic Park. Picture: AAP
Mirvac CEO Susan Lloyd-Hurwitz and NSW Treasurer Dominic Perrottet in a physically distanced topping out at the Pavilions building site at Sydney Olympic Park. Picture: AAP

When asked if she saw movement on tax reform within 12 months, she replied: “I think there’s appetite with my state colleagues and federal colleagues, I really do.”

She would not put a figure on a proposed GST level.

NSW has also previously disputed the national distribution of the tax revenue.

Treasurer Dominic Perrottet has long spoken of his desire to ditch inefficient taxes such as payroll tax or stamp duty.

Ms Berejiklian said NSW could have a post-war style comeback and flagged the state’s need for a diverse ­export base and for Sydney to grow its own local manufacturing capabilities.

“Markets like the UK and Europe … haven’t traditionally looked at NSW and now because we’re a safer haven and because we might fare better than other places they will look at us differently I think.

A central Sydney construction site on May 14. Picture: Saeed Khan/AFP
A central Sydney construction site on May 14. Picture: Saeed Khan/AFP

“No disrespect to America or the UK but the situation with the virus there is very grave and we often compete with them.

“We’re often third but now if people say ‘we’ll maybe we’ll think about Sydney before London or New York’ we’ll be in a very strong position.”

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Original URL: https://www.dailytelegraph.com.au/news/nsw/sydney-will-boom-as-safe-haven-for-investors-premier/news-story/e1c970221084a45f3a226b6b7c90ee95