WA; Court issues warning to federal government on tax changes

AAP General News (Australia)
08-01-1999
WA; Court issues warning to federal government on tax changes

PERTH, Aug 1 AAP - West Australian Premier Richard Court today warned that abolishing
accelerated depreciation in favour of tax cuts could jeopardise billion dollar investment
projects.

On the eve of the Ralph report on business tax reforms being handed to federal Treasurer
Peter Costello, Mr Court warned the federal government it "better be" listening to
concerns over accelerated tax.

The report is set to recommend the business tax rate be cut to 30 per cent, with a range of
trade-offs including the end to accelerated depreciation.

"We have a number of billion dollar-plus projects that are in the pipeline and those
projects would be severely affected if the accelerated depreciation advantages were taken
away," he told reporters.

"The message we've sent to the prime minister is the resources sector is a major investor
and they provide ongoing export income and they provide ongoing revenues for state and federal
governments.

"The last thing you'd want to do is sabotage investment in this sector by changing a
taxation system to favour people who actually don't invest heavily in capital projects, in
particular, the service industries."

Mr Court said the resources-driven WA economy had been the driving force in attracting
significant new levels of private investment to Australia.

The National Party has also expressed concerns about ending accelerated depreciation,
supporting the mining industry and farmers who believe they will suffer most under the
changes.

AAP pr/jnb

KEYWORD: TAX COURT

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