The states must now look to land taxes

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By Leith van Onselen

With the states turning down the Turnbull Government’s offer of levying their own income taxes, Prime Minister Malcolm Turnbull is now insisting that they will have to raise their own taxes, including from land, before asking Canberra for more funds. From The AFR:

While the states welcomed the federal government’s offer on Friday of $2.9 billion between them for hospitals to 2020, they did not draw attention to an agreement that they will improve their tax systems to reduce economic disincentives.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.