The Treasurer announced a broad review of Territory revenue streams to assess the overall efficacy and equity of the ACT taxation system in August 2010.

The Review was conducted by a Panel comprising of former ACT Treasurer, Ted Quinlan as chair, Professor Alan Duncan from the University of Canberra and the Under Treasurer.

The Panel has provided recommendations and findings on whether ACT taxes are:

·        appropriate;

·        equitably and effectively distributed; and

·        provide the stability and certainty required to continue to deliver important community services to Canberrans.

The Panel’s report has provided a comprehensive analysis of the Territory’s taxation system in a wide range of contexts including, other jurisdictions’ tax systems, the ACT’s economic structure, its socio demographic composition, expenditure needs, and Government policy objectives.

The Panel has highlighted the challenges faced by State and Territory governments – narrow taxation bases, escalating cost of services and eroding GST revenue base. The ACT also faces those challenges.

The Panel has confirmed that the ACT’s taxation mix is not out of the norm, taking into account its circumstances. The Territory’s higher than average taxation effort funds above average expenditure on services. When compared to the size of the economy and incomes, the Territory is not a high taxing jurisdiction. Overall, the ACT’s taxation system has relatively higher economic efficiency compared to other jurisdictions.

The Panel has suggested that the ACT is in unique position to pursue reform, and made recommendations regarding a number of taxes to improve the fairness and efficiency of the taxation system.

The final review report is informed by consultation with the community and business, and is available on the website here.

*ACT Taxation Review
*Government Response to: ACT Taxation Review