Local government's share of tax falling further behind
Local government's share of taxation has dropped to 2.9 cents in every tax dollar raised across the three spheres of government, according to new figures released this week by the Australian Bureau of Statistics. Local government taxation comprised just 2.9% of total taxation revenue in 2004-05, down from 3.1% in 2001-02. Commonwealth taxation revenue, including taxes from other levels of government and Commonwealth public corporations, rose 9.3% from $210bn in 2003-04 to $229bn in 2004-05. In 2004-05, Commonwealth taxation represented 82.3% of taxation revenue from all spheres of government while state taxation comprised 14.9%. Total taxation revenue collected in Australia rose $21.3bn - or 8.3% - between 2003-04 and 2004-05. Local government taxation revenue increased 6.2% from $7.7bn in 2003-04 to $8.1bn in 2004-05. Taxation revenue for the Commonwealth as a percentage of GDP rose from 25.0% to 25.7%, while total taxation revenue from state and local governments fell from 5.7% of GDP in 2003-04 to 5.6% in 2004-05. On average, Australian residents each paid $13,781 in tax in 2004-05, up 7.0% on the previous year. Commonwealth taxation per capita rose by 8.1% from $10,486 in 2003-04 to $11,336 in 2004-05. State and territory governments and local councils charged residents an average of $2,462 a year in property taxes, stamp duty, gambling taxes, payroll and other taxes in 2004-05. This was almost unchanged from $2,404 in 2003-04.
IGA on track for April 12 sign off
It is looking increasingly likely that the draft intergovernmental agreement on cost shifting will be approved by federal, state and local government representatives in Canberra on April 12. A special meeting of the Local Government and Planning Ministerial Council has been called to consider - and possibly approve - a final draft. The draft document was developed in response to recommendations of David Hawker's Fair Share report on cost shifting. It has been with state and federal government agencies since late last year. The draft was considered by the ALGA Board last month. ALGA President, Cr Paul Bell, said ALGA had sought a document that counters cost shifting by improving the way the three spheres of government relate to each other. "In particular, we want a set of principles guiding the allocation of roles and responsibilities in relation to services and functions and how services are funded and delivered at the local level," he said. "Essentially, we want the IGA to secure fair treatment for local government, nothing more, nothing less."
Draconian planning laws passed in NSW
Despite strong opposition by the NSW Local Government and Shires Associations (LGSA), the state government has passed new planning legislation that enables it to impose a planning administrator or planning panels on councils it thinks aren't processing development applications fast enough. However, under amendments passed in the upper house, the state government will have to consult the NSW LGSA about the details of a system to assess the planning performance of councils. The legislation was pushed through despite polling commissioned by the LGSA that showed 72% of respondents said councils were the most appropriate level of government to determine building and development applications. The polling also indicated 92% believed the community should be consulted before any attempt to transfer planning responsibility from local councils to state government-appointed assessment panels. LGA President, Cr Genia McCaffery said the legislation sought to strip councils of planning powers and rob communities of a consultative role in planning decisions. The state government had also ignored "the many developers who want to lodge an inappropriate application to build a Taj Mahal on a postage stamp land allotment, and assume their right to bypass council under 'deeming refusal' provisions". ALGA President, Cr Paul Bell, has accused the developer's lobby of rubbishing the democratic right of all Australians to control - through local government - the shape and scale of development within their own communities. "Unfortunately, some sections of the development industry appear hell bent on removing the right of democratically elected community representatives to make decisions on development applications," Cr Bell said.
