TAX NEWS - June 2010

Nats push for regional tax zones

The Nationals will push for the establishment of regional tax zones if elected to Government as part of a broader plan to address population growth in Australia.

At the party's federal conference in Canberra at the weekend, delegates endorsed a proposal to "support the development and growth of regional Australia" by reforming the taxation system and introducing relocation incentives for businesses which move to regional areas.

The motion said a reformed tax system should offer "suitable scaled tax advantages" which would be linked to the consumer price index (CPI) for those people who chose to relocate to or reside in regional Australia.

Nationals' leader in the Senate, Barnaby Joyce, said Australian Governments should be providing motivation and a "back-pocket incentive" to move people to regional areas if they were to implement a population policy.

Senate colleague Fiona Nash said the days of being "hands-off" and expecting regional Australia to look after itself were gone.

Amendments to introduce electoral weighting for rural electorates were rejected as part of this proposal, despite support from key MPs including Senator Joyce.