Thursday, March 16, 2006

Zonal taxes needed, say regional groups

COMMUNITY groups, politicians and medical associations are calling for a review of zonal tax rebates, some of which have remained largely unchanged since they were first put in place fifty years ago.

Under the current zonal tax rebates scheme, Australia’s rural and remote regions are divided into two zones.

The most remote parts of the country, such as northern Western Australia, north-west Queensland and the Northern Territory, have been placed in Zone A, while more accessible rural sections such as southern WA, South Australia and parts of western Queensland and New South Wales have been placed in Zone B.

The aim of zonal rebates is to entice people to rural areas as well as compensate them for the higher cost of living and the difficulties they face in working in such remote, inaccessible regions.

The Remote Area Planning and Development Board (RAPAD) is one organisation currently calling on Federal Treasurer Peter Costello to review the rebate scheme.

“The system was last reviewed in 1993, but the changes were quite minor in their effect,” RAPAD general manager David Arnold said.

“If the government is serious about rural and remote Australia, a revamped zonal tax system could stimulate investment, economic prosperity and population growth in rural and remote regions.”

Gordon Gregory is executive director of the National Rural Health Alliance, an independent, peak body for rural and remote health professionals across Australia.

He believes a review of the scheme which only pays very small allowances to rural residents is long overdue, as allowances in certain zones are too low and many towns are now too large to be considered ‘remote’.

“For example, Darwin is situated in Zone B, along with most of the northern section of Australia,” he said.

“However, this city arguably offers quite a good lifestyle so the allowances for Darwin residents should differ from those applied to more remote, inaccessible regions.”

Mr Gregory believes the reason why a review of the rebate scheme has not occurred earlier is because there have not been sufficient pressure from remote and rural areas.

“We need to continuously remind the government of this issue,” he said.

“This is not a pie in the sky idea.
“We need to invest in rural areas so people will gravitate there.”

Member for Mount Isa, Tony McGrady, has written to Senators Ian MacDonald and Barnaby Joyce to join with him in making representations to the federal Government on the issue.

“Our country will never reach its full potential whilst we have a population centred on the coastal strip,” Mr McGrady said.

“Senator Joyce is quite vocal about being the champion for the bush, while Senator MacDonald has said he has no problem with Townsville and Cairns losing their status as areas which attract remote zone tax rebates.

“I believe this is a great time for us to combine our voices on this issue.”

0 Comments:

Post a Comment

<< Home