REFORM NEEDED IN NSW  August 2000

REFORM NEEDED IN NSW  August 2000

The latest unemployment figures are a further indication that the Carr Government must undertake taxation reform or continue to risk a post-Olympic slide in the state's economy.

ABS figures just released confirm that in June 2000;
Employment in NSW decreased by 0.5%
Unemployment in NSW increased by 1.5%
The seasonally adjusted figures are a worrying indication that, as the Olympic construction effect fades, business activity and jobs in NSW are under pressure.

The Olympic construction programme, and a strong national economy, have masked the reality for NSW business - that the NSW government has done none of the reform necessary to see business and employment grow after the Olympics, especially in rural areas.

NSW has the highest taxation regime in the country; state taxes and charges have increased 53% in the life of the Carr Government.

That includes much higher rates of payroll tax than comparable states, particularly Queensland.

The opportunities provided by the new tax system for Australia have been squandered in NSW, with the Carr Government failing to meet its own election commitments to reduce payroll tax.

With Victoria and Queensland at much lower rates than NSW, and projected to remain so for at least the next two years, we will continue to see jobs lost from this state unless the Carr Government accelerates payroll tax reform.

The Carr Government has failed to address crippling workers' compensation premiums.

Sadly, NSW is the highest taxed state which, if not addressed, will see the continual struggle for regional business competing against states such as Queensland.