ACT Greens Leader Shane Rattenbury says the health levy is unfair. Photo: Michelle Kroll.
The Barr Government’s centrepiece $250 health levy on Canberra property owners is in doubt after the ACT Greens vowed to vote against the measure in the Legislative Assembly – and the Canberra Liberals appear open to join them.
In his Budget Reply speech late on Thursday (27 June), Greens Leader Shane Rattenbury said the levy was regressive and unfair, in comparison to his party’s Big Corporations tax which would only affect the top one per cent of businesses but raise double the amount.
“Not only is this levy unfair, but it passes on the failures of both Territory and Federal Labor to create a truly universal healthcare system,” he said.
Mr Rattenbury said a flat levy did not take into account a person’s ability to pay and unfairly impacted a lot of people in the community.
“It essentially imposes a gap payment on Canberrans – whether they access healthcare or not and no matter their income,” he said.
“Many Canberrans are already struggling and even those on decent incomes are feeling the pinch.
“The irony is that this additional levy might be the difference between someone being able to buy essential medicine or healthy food – both key to maintaining good health, in order to fork out for the government’s tax bill.”
Canberra Liberals leader Leanne Castley steered away from revealing a position on the Labor tax measures in her Budget Reply speech, but she told ABC radio on Friday morning that the levy was a concern and she was open to the move, subject to the party room forming its position.
“A health tax is not something I would ever have believed this government would stoop to in this cost of living crisis,” she said
Mr Rattenbury said the Big Corporations Tax – an additional payroll tax on the largest organisations in the city, such as the big supermarkets, banks and airlines – would raise $107 million a year to pay for the services Canberrans need.
He said more than 99 per cent of businesses would not pay.
The government’s proposal was the worst of all worlds, he said.
“Under the euphemism of ‘broadening the base’, ACT Labor is proposing a reduction in the payroll tax threshold to $1.75 million, meaning that more small, local businesses will pay,” Mr Rattenbury said.
“Meanwhile, the largest businesses – who reap in much higher profits – will enjoy a lower effective payroll tax rate than what was anticipated prior to this Budget. And this approach will only raise half of the revenue that the ACT Greens Big Corporations Tax proposal would.”
But Treasurer Chris Steel said this super payroll tax proposal was unrealistic and would only result in higher grocery prices.
He said Labor would discuss the levy with the Greens but there were only a few days until it was due to be enacted on 1 July.
“I’ll certainly be reaching out to the Greens Party to have a discussion, but I haven’t heard from Mr Rattenbury about what their plans are to help fund the critical healthcare services needs that we have in the Territory,” he told the ABC.
Mr Rattenbury told the Assembly that given 40 per cent of the workforce in the ACT was exempt from payroll tax because they were employed as public servants, the ACT should be getting a better deal from the Federal Government in recognition of the significant portion of the APS workforce who called Canberra home.
“These people are, after all, working on behalf of the whole country and we need to see advocacy from the Treasurer and Chief Minister to ensure that Canberra gets a fairer share,” he said.
Mr Rattenbury called out Labor for its mismanagement of the MyWay+ ticketing system and costly ICT projects and reduced spending on the environment.
He also urged it to work harder with the Commonwealth to hasten the rollout of light rail stage 2B to Woden.
