Dominic Perrottet
Dominic Perrottet

Treasurer’s plan to defy virus gloom

The state's economy will make a "roaring" recovery, according to the NSW treasurer who has mapped a vision to slash red tape and reform the tax system so business can flourish.

Dominic Perrottet revealed he wants landmark reform of the state's economic structures - including major tax cuts - with a view to driving productivity and putting business growth at the centre of the economy as NSW charts the road back from the coronavirus pandemic.

Critical elements of the Treasurer's path to growth include deregulation and tax reform, turbocharging our trade and investment strategy to gain "first mover" advantage, reskilling the state's workforce and breaking down federation barriers to financially reward reforming states.

"NSW has always been Australia's engine room and we're going to come roaring out of this and drive our state to the next level," Mr Perrottet told The Daily Telegraph.

"We're going to get our state back in business, the budget back in the black and together beat this thing."

NSW Treasurer Dominic Perrottet wants landmark reform of the state’s economic structures — including major tax cuts. Picture: Britta Campion
NSW Treasurer Dominic Perrottet wants landmark reform of the state’s economic structures — including major tax cuts. Picture: Britta Campion

Mr Perrottet would welcome the cutting of company tax and pursuing industrial relations reform at a federal level, and in NSW slashing inefficient imposts like stamp duty and payroll tax.

He also intends to cut red tape and regulations on business such as licencing fees and other hurdles.

Planning reforms to speed up development projects will also be undertaken.

It came as Reserve Bank governor Philip Lowe said Australia could expect the economy to begin its bounce-back in the September quarter, but warned of difficult months ahead.

He said we could see a GDP growth of 6-7 per cent next year - after a fall of 6 per cent this year and a 20 per cent drop in hours worked by Australians.

Governor of the Reserve Bank of Australia Phillip Lowe speaks to the media on Tuesday. Picture: AAP
Governor of the Reserve Bank of Australia Phillip Lowe speaks to the media on Tuesday. Picture: AAP

 

Mr Lowe suggested the government examine calls for income, consumption and land tax reform as well as cut red tape that stifles innovation.

Business titan Tony Shepherd backed Mr Perrottet's assessment, saying it was critical for all three levels of government to create an environment for business to grow the economy.

"NSW has all the resources at its fingertips to come out of this stronger than ever before - complacency is our biggest enemy," Mr Shepherd said.

"Now the music has stopped - and this is a very serious economic setback - we have to grab the opportunity to really get the economy moving again."

He said all levels of government needed to slash red tape for business and encourage investment, as well as removing taxes on employment and business transactions.

Mr Shepherd also pointed to industrial relations reform, saying "the IR system has gone back to the '70s" and that modern flexibility was critical. "The government must strike now," he said.

 

 

Originally published as Treasurer's plan to defy virus gloom

Business titan Tony Shepherd has backed the Treasurer’s assessment. Pictured: Sam Ruttyn
Business titan Tony Shepherd has backed the Treasurer’s assessment. Pictured: Sam Ruttyn


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