NSW: Iemma expected to make announcement about vendor tax

AAP General News (Australia)
08-01-2005
NSW: Iemma expected to make announcement about vendor tax

SYDNEY, August 1 AAP - Incoming NSW Premier Morris Iemma will make an announcement
about the future of the state's controversial vendor tax tomorrow.

Mr Iemma will be formally elected as Labor leader by the caucus tomorrow, before being
sworn in as NSW premier later in the week.

According to senior Labor figures, Mr Iemma promised to roll back poker machine taxes,
and the unpopular 2.25 per cent vendor duty on the sale of investment properties, as part
of his pitch for the state's top job.

But Mr Iemma yesterday denied a decision had been made, saying he "will be revealing
all on Tuesday".

The Real Estate Institute of NSW and the Property Council of Australia said scrapping
the vendor tax would restore momentum to the state economy.

Mr Iemma will also be under pressure to cut business taxes to make the state more competitive.

Industry group Australian Business Limited said more than 80 per cent of full time
jobs created in Australia last year were outside NSW.

The average payroll tax and workers' compensation charges per employee paid by NSW
businesses were 71 per cent higher than in Queensland, 41 per cent more than in Western
Australia and 40 per cent higher than in Tasmania, it said.

AAP ka/cjh/

KEYWORD: IEMMA DAYLEAD

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