Leslie White
May 5, 2010
AUSTRALIA'S most significant tax review in decades has recommended Victoria's controversial fire services levy be scrapped.
The levy, which is currently the subject of a Victorian Government review, funds fire services including the Country Fire Authority, however, it almost doubles the cost of property insurance for rural businesses.
Victorian treasurer John Lenders told The Weekly Times critics needed to come up with suggestions to replace the levy.
"The time for just criticising the FSL is over," Mr Lenders said.
"It is time for people to come forward with details of any other way to fund our fire-fighting services."
The Henry Review also recommended wine be taxed by volume, but the recommendation was ignored by the Federal Government.
The Australian wine industry claimed the move would send the price of cask and cheap bottled wine skyrocketing.
The Government will create a $700 million-a-year infrastructure fund as part of its response to the Henry Review.
The money will go to state-based infrastructure projects.
Small businesses will be able to write-off assets up to $5000 as of 2012 as part of the changes proposed by Government - the amount had previously been $1000.
Company tax for small businesses will reduce from 30 to 28 per cent as of 2012-13.
Other companies will get the benefit of the tax cut by 2014-15.
Meanwhile, compulsory superannuation contributions by employers will rise from 9 to 12 per cent.
Victorian Farmers Federation president Andrew Broad said the Government's response to the review was a "mixed bag" as it adopted just a handful of the review's 138 recommendations and rejected 27 of them outright.
Mr Broad welcomed the tax cuts and creation of an ongoing infrastructure fund.
"Farmers are keen to see infrastructure spending prioritised in rural areas," Mr Broad said.
However, he said the review ignored a key request in the VFF's submission - for municipal rates to be based on income rather than land value.
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