Tax increases hidden in plain sight
Treasurer Tom Koutsantonis slipped his controversial increase to the Emergency Services Levy past two senior Liberals in the week before the state budget.
Changes to the ESL – which will hit every property owner and most vehicle owners in South Australia – will be the biggest slug to ordinary South Australians flowing from last week’s budget.
Those changes were clearly signalled in advice from Koutsantonis to State Parliament’s Economic and Finance Committee in the lead-up to the budget – but no-one noticed.
The committee, which includes senior Liberals Iain Evans and David Pisoni, must report to Parliament on the Treasurer’s advice – and he couldn’t have signalled his intentions more clearly.
The report was rushed through the committee on the Monday before last Thursday’s budget.
Unlike previous years, the report did not detail the size of the remissions – essentially discounts – proposed for the coming year.
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These remissions have been applied to the levy every year since it was introduced.
In fact, the report – which wasn’t opposed by any members of the Labor-dominated committee – says explicitly that the remissions would be dealt with in the budget.
Despite this signal, the report was approved by four committee members, ignored by three, and opposed by none.
Removing the remissions for properties will rake in an extra $80 million. Removing the remissions on cars, motorcyles and historic vehicles will net the government an extra $9 million per year.
For the average property-owner, the ESL will increase by $150 a year, while a standard vehicle registration will go up by $8.
While the Liberals couldn’t have voted down the committee report, it was a clear political opportunity gone begging.
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It also raises questions about how much attention MPs give to their Parliamentary committee work.
In 2013-14, the committee’s report on the ESL contained numerous references to the remissions, including summarising the size of the remissions for each category – private fixed property, and motor vehicles and vessels.
This year’s report has no such detail.
In face, it says in the conclusion: “The committee notes the prescribed rates of the fixed property and mobile property levies and in the absence of the remission information, the committee is unable to comment on any change in the effective rate. The committee notes the details of any remissions will be provided in the 19 June 2014 Budget.”
Also missing this year is the following statement from the 2013-14 report: “This year, as in all years of the levy’s operation, the government has granted remissions on the declared rate of the levy.”
The remissions represent the difference between the declared rate and the effective rate of the levy.
It’s not as if Evans, in particular, would be unfamiliar with the details of how this works.
It was Evans, as Minister for Police, Correctional Services and Emergency Services, who joined with Justice Minister Trevor Griffin in 1998 to establish a committee to review the funding of emergency services.
That committee recommended the ESL that property owners pay today.
Evans and Pisoni did not return calls from InDaily this morning.
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