Dominic Perrottet attacks Federal Government for its reluctance to initiate wide-ranging tax reforms

NSW Treasurer Dominic Perrottet takes aim again at the Federal Government for its reluctance to initiate wide-ranging tax reforms.

NSW Treasurer Dominic Perrottet,

NSW Treasurer Dominic Perrottet has once again taken aim at the Federal Government for its reluctance to initiate wide-ranging reforms of the tax system, accusing politicians of being in “perpetual campaign mode” and too fearful to make bold policy decisions.

Speaking on Monday at a Federal Financial Relations Review forum being held at NSW Parliament House, Mr Perrottet described this statis on tax as a decade of lost reform opportunities and uninspiring leadership.

“A wasted decade of what I call Canberra comatosis — a condition that’s part comatose, part sclerosis — is crippling our nation’s capital,” he said. “Three year federal terms are part of the problem. They (politicians) cannot afford to take risks, and the result is a reactive brand of politics – not thoughtful, visionary leadership.”

Mr Perrottet said a 2008 review of the tax system, which argued for substantial reform, had been “gathering dust” due to this paralysis at the Commonwealth level.

Speakers at Monday’s forum include Dr Ken Henry, who conducted that review, along with David Thodey, Chair of the NSW Review of Federal Financial Relations, which was ordered by Mr Perrottet in August 2019.

Other speakers at the forum include Dr Martin Parkinson, Secretary of the Department of the Prime Minister and Cabinet, former NSW premier Nick Greiner, and former New Zealand prime minister Bill English, a member of the FFRR panel.

The Review will deliver a consultation findings report to the NSW Government in February, followed by interim and final reports later in 2020.

Mr Perrottet, a prominent NSW leadership aspirant, used his opening speech at the day-long event to suggest that if the Federal Government was averse to the idea of tax reform then powerful states, such as NSW and Victoria, should drive it themselves.

One area that routinely comes in for criticism is GST revenue, and how the money is apportioned between the states once it has been collected. Mr Perrottet has long argued that NSW should be given more of this revenue — and that it is disadvantaged by the present funding formula — because the state contributes greater amounts to the Commonwealth than other jurisdictions.

In remarks that could be regarded as uncharacteristically strident, he said governments that don’t show policy vision are usually punished by their communities, citing Ted Ballieu’s Liberal government in Victoria as an example of this type of failure.

“They failed to do anything substantial, and Labor’s Daniel Andrews swept the Liberals out of power after just one term, with a bold vision for Victoria,” Mr Perrottet said.

But if governments pursue sensible policy, and if they are upfront about the costs and benefits to communities, then success would follow, he said.

“The people will back you in.”