Reform is ‘a test of nation’s maturity’, says John Anderson

Former deputy prime minister John Anderson has said the country needs to ’wake up’ and work towards meaningful reform.

Former deputy PM John Anderson. Picture: Gary Ramage

Former deputy prime minister John Anderson has said the country needs to “wake up” and work towards meaningful reform, as NSW Treasurer Dominic Perrottet urged the states to lead the debate­ on major issues such as broadening or lifting the GST.

Speaking at the National Press Club on Wednesday, Mr Perrottet said the states should be a “driving” force in the effort to addres­s pressing concerns such as making the tax system more efficient­. “It shouldn’t just be the commonwealth that leads the discussion,” he said.

Mr Perrottet appeared beside members of an expert panel presenting­ a draft report into a NSW review of federal financial relations.

The panel included former Telstra chief executive and CSIRO chairman David Thodey, former secretary of the departments of health and finance Jane Halton, and Mr Anderson, who was deputy to John Howard and National Party leader from 1999-2005.

The NSW report advocated, among other recommendations, moving the state from stamp dutie­s on property transactions to a broadbased land tax, potentially funded by a lifting or broadening of the GST.

On the 20th anniversary of the introduction of the goods and services­ tax, Mr Anderson said the ability to undertake major reform­ at a crucial time in our history­ was “nothing short of a test of our national maturity”.

“You can‘t get good public policy­ out of a bad or a truncated or distorted debate that is not evidence based,” he said. The former deputy PM said that addressing the “bewildering range of internal and external challenges” facing the nation could not be achieved “without a massive improvement in the public debate”.

Despite the newfound sense of national unity between states and the commonwealth, Mr Perrottet conceded that the political difficulty of getting GST reform done rated an “eight out of 10”.

“We should have a lower tax burden, fairer tax burden, and a smarter tax system that‘s fit for the 21st century,’’ the NSW Treas­urer said.

“What I wouldn’t want to see, particularly in my state, is households­ being charged more, particularly in circumstances of the economic challenge we face.”

Immediately following the event, Anthony Albanes­e reiterated that GST reform­ would not be a bipartisan issue.

“The problem with consumption taxes is that they levy the same amount in terms of a percentage­ regardless of how wealthy people are,” the federal Opposition Leader told Sky News.

“We want to ensure that ­people who can afford to pay more are the people who are affected­ by any tax changes, not those who can’t afford to pay.”