State Government’s SP AusNet tax grab soars to $136m

A STATE Government tax grab on land used by a power giant has soared to $136 million. And it is passed straight on to customers.

A STATE government tax on land used by a power giant has soared to $136 million, leading to calls for money to be returned to struggling families.

The tax on SP AusNet, which operates high-voltage lines that send power to Victorian homes and businesses, is passed straight through to ­energy users.

It was originally created by the state to pay for subsidies the government gave to the Portland aluminium smelter, owned by Alcoa.

However, a new deal for subsidies struck this year has slashed state government contributions by half — to about $50 million a year — leading to questions about where the rest of the money is going.

Treasurer Tim Pallas claims the easement land tax “does not relate to Alcoa specifically” and that the tax revenue is spent on modernising the ­energy sector and creating jobs.

But the government is facing growing pressure to boost assistance for households or businesses that are being crippled by high energy prices.

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A State Government tax on SP AusNet has soared to $136 million and is passed straight through to energy users.

Consumer Action Law Centre chief executive officer Gerard Brody said “too many Victorians are struggling paying for power bill”.

“If the Victorian government is taxing the electricity transmission companies without a purpose, the least they could do is make sure the tax goes back to those in financial difficulties as a concession on their bills,” he said.

Victorian Head of Australian Industry Group, Tim Piper, said soaring revenue filling government coffers was indicative of a wider tax creep in the property sector.

“The government should be transparent about its take, and where some taxes are outmoded or outdated, money should be returned,” he said.

Mr Piper said that many industries were paying “through the nose” for energy.

A spokesman for Mr Pallas, Elliot Giakalis, said programs funded by the tax were worthwhile. “The easement land tax does not relate to Alcoa specifically, and helps fund a wide range of measures to sec­ure Victoria’s energy supplies, create a sustainable economy and importantly create jobs,” he said.

Mr Giakalis said more than $155 million was in the 2017-18 state Budget to modernise Victoria’s energy system, identify the potential for onshore conventional gas development, and to help households and business manage energy use.

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