6 July 2005 
 
The Institute of Chartered Accountants has welcomed the announcement by Treasurer Eric Ripper of a state tax review, as called for by the Institute following the release of its State of Taxes Report in May 2004.  
 
The report produced by Ernst & Young and the Institute revealed that between 1993/94 and 2002/03 WA taxpayers experienced substantial increases in state taxes, in one instance more than 270% (stamp duty on insurance policies).  
 
“The scope and scale of the tax increases in WA raises a question mark regarding whether this situation is sustainable for both industry and the community and as such this review is welcome news,” said Institute WA Manager, Mr Con Abbott.  
 
Mr Abbott said he was particularly pleased that the review would not be restricted to a revenue neutral outcome, take public submissions as well as convene a reference group from key community sectors.  
 
“WA needs this review to ensure a fairer tax structure and to see moves towards reform is commendable,” Mr Abbott said.  
 
The Institute said since 2000/01 stamp duty on land transfers had increased by around 90% and other state taxes like motor vehicle stamp duty had achieved double digit increases in the same period. This comes on top of the GST generating an extra 248 million in revenue to the State in 2004/05 with an additional $833 million in aggregate forecast during 2005/06 and 2007/08.  
 
Forecasted budget figures reveal that since 2000/01:  

• Stamp Duty has increased 90.7% ($549.2M to $1047.1M)
 

• Insurance Stamp Duty increased 64.1% ($155.9M to $255.8M)
 

• Motor Vehicle Stamp Duty increased 60.5% ($161.1M to $258.5M)
 

• Land Tax increased 40.3% ($220.7M to $309.7M)