Report highlights local taxation burden

Submitted 13/01/2011

Business SA

 

The State's leading business membership organisation, Business SA, responded to the Institute of Public Affairs 2010 State Tax Report.

Business SA Chief Executive Officer, Peter Vaughan, said that it was a major concern that South Australia continues to impose the highest level of business taxes.

"This latest taxation report again confirms that South Australian businesses are not competing on a level playing field with the other States," Mr Vaughan said.

"We've been highlighting the fact now for some time that South Australia's current taxation burdens are having a direct impact on jobs and investment.

"Not only are the findings of this report a concern but they also highlight our uncompetitive taxation system to the rest of the country.

"We have welcomed taxation relief in recent State Budgets but we still have a long way to go if we are serious about removing these major burdens on businesses throughout the State.

"Our high levels of land tax deters local businesses from expanding and discourages interstate and overseas companies from investing in South Australia.

"Our State currently has the highest unemployment in the nation and taxation pressures, such as our low payroll tax threshold, are having an impact on employment levels."