Title : Preface and Table of Contents of Review of Western : Australian State Taxes 1994 Author : Taxation Policy Elective Class 1994 Organisation : School of Law, Murdoch University Language : English Keywords : TAXATION, WESTERN AUSTRALIA, EQUITY, : EFFICIENCY, SIMPLICITY, REFORM. Abstract : The Review is an assessment in 12 Chapters of several : taxes levied by the State of Western Australia, and some : which are not currently imposed by the State but : which are found in other jurisdictions. These : include tobacco taxes, environmental taxes, : alcohol taxes, petrol taxes, death duties and wealth : taxes, services tax and local government taxes. The : review is particularly concerned with issues of : equity, efficiency and simplicity in the imposition of : the taxes reviewed. Criticisms are made on the basis : of these characteristics of an ideal tax. The review : also considers other matters relevant to taxation, : including moral exemptions, Federal-State financial : relations, the effect of technological advances on : financial taxes and examines other forms of revenue : raising by the government, including departmental : fees and charges. Several recommendations are made : for the improvement of the method of taxation in : Western Australia. Contact Name : The Editors, E Law Contact Address : Murdoch University Law School, PO Box 1014, : Canning Vale, Western Australia, 6155 Contact Phone : +61 09 360 2976 Contact Email : elaw-editors@csuvax1.murdoch.edu.au Last verified : 20 December 1994 Last updated : 20 December 1994 Creation Date : 9 December 1994 Filename : 94pref.txt File Size : 11K File Type : Document File Format : ASCII Publication Status: Final ISSN : 1321-8247 COPYRIGHT POLICY : Material appearing in E Law is accepted on the basis that the material is the original, uncopied work of the author or authors. 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EMAIL RETRIEVAL: message "get elaw-j 94pref.txt" URL: gopher://infolib.murdoch.edu.au:70/00/.ftp/pub/subj/law/jnl/elaw/comment/ 94watax/94pref.txt ftp://infolib.murdoch.edu.au/pub/subj/law/jnl/elaw/comment/94watax/ 94pref.txt ------------------------------------------------------------------------ REVIEW OF WESTERN AUSTRALIAN STATE TAXES 1994 prepared by Taxation Policy Elective Class Murdoch University School of Law _Preface_ This is the second review of Western Australian State Taxes to have been produced by students enrolled in the course Taxation Policy. Taxation Policy is an elective subject in the Bachelor of Laws degree programme offered in the Law School at Murdoch University. The first review was produced in the second half of 1993. This review was written during the first half of 1994. For this review the authors were broken into twelve groups, each with primary responsibility for one of the chapters in the Review. Again this year, the Commissioner for State Taxation kindly made officers of his department available to each of the group. This enabled us to complete our research more quickly and completely than might otherwise have been possible. We are once again grateful for the assistance lent us. Naturally, the opinions expressed in this Review remain entirely those of the Taxation Policy Elective itself. Each group presented their chapter both in seminar form and as a draft, allowing for significant feedback from other members of the Elective throughout the writing-up period. Each member of the Elective also produced an individual paper critiquing the various draft chapters and suggesting directions for the Review. The purpose of the Review is to offer a policy based critique of the State tax system, with a view to stimulating further discussion and research into one of the most important areas of our federal system of government. The members of the 1994 Taxation Policy Elective were: Dr Neil McLeod (course co-ordinator and editor) Belinda Aitken Tamara Kamien Graeme Potger Mark Andrews Mark Rodda Joshua Preston Garrick Archer Becky Rorrison Colin Pruiti Kath Balfour Jeremy Rosenthal Andrew Ross Charmian Barton Rowan Kelly Tricia Shandley-Jones Andrew Brown Elham Khosravi Natalie Silver Graeme Carlin Geoff Kirk Paul Simpson David Chelliah Inge Lauw Rebecca Stacey Fulvia Donati Ted Leech Niv Tadmore Humphry Faas Peter McCarrey Johanne Thomas Carl Fernandes David Marsh Linda Tudori Kim Gray Rob Merrick Jo-anne Wee Chu-Yian Mandy Greig Warren Milward Nelson Chee Eng Wong Natalie Jones Cara Natta Lara Yeremich Jamie O'Donnell Rhonda Parks Herman Yip Our thanks to Dale Montgomery for her assistance in preparing the finished Review for printing. Neil McLeod November 1994 --------------------------------------------------------------------- CONTENTS Chapter 1 ENVIRONMENTAL TAXES Introduction The Rationale Underlying The Use of Economic Instruments The Use of Taxation Instruments as a Response to Environmental Pollution A Tax Policy Evaluation of Environmental Taxes Other Environmental Protection Measures Legal and Jurisprudential Implications Conclusion Bibliography 2 TOBACCO TAXATION Characterisation of Tobacco Industry Price Elasticity of Demand for Tobacco The Legislative Scheme Tobacco Tax - A Case for Regressive Tax Vertical Inequity Horizontal Inequity Regulation or Revenue? The Use of Tax as a Regulatory Tool Does Healthway Achieve its Purpose? Earmarking for Health Promotion Conclusion Bibliography 3 ALCOHOL TAXATION Introduction Equity Efficiency Simplicity The Social Costs of Excess Alcohol Consumption Effectiveness of Present Regulation Conclusion Summary of Recommendations Bibliography 4 THE CONSTITUTIONALITY OF STATE PETROL TAXES Part One: The Scheme Part Two: The Law Part Three: Application of the Law to the Scheme Part Four: Recommendation Bibliography 5 DEATH DUTIES AND OTHER WEALTH TAXES What is a Wealth Tax The Australian Position Types of Wealth Taxes Purpose of Wealth Taxes Validity of Wealth Taxes Conclusion Bibliography 6 A BROAD-BASED STATE SERVICES TAX Part 1 Introduction Why Not A Goods and Services Tax? Part 2 Equity Equity - The Existing Taxes Vertical Equity Horizontal Equity Tobacco Alcohol Petrol Services Tax Summary Part 3 Efficiency The economic rationale behind a services tax The efficiency criterion The effect on service providers The effect on service recipients Summary Part 4 Simplicity The Structure Of The Tax Multiple Rates or a Single Rate? Exemptions and Zero-Ratings Methods Of Enforcement Tax Evasion and Non-Registration General Problem of Tax Evasion in Underreported Sales Summary Part 5 Conclusion Bibliography 7 OTHER FORMS OF GOVERNMENT REVENUE Introduction Methodology Towards a Definition of Taxation Revenue Raised from Government Trading Enterprises Revenue Raised from Departmental Licences, Fees and Charges Possible Implications Bibliography 8 REVIEW OF LOCAL GOVERNMENT TAXATION Introduction The Functions of Local Government The Changing Face of Local Government Land Value Rating as Taxation The Rating System Rating and Equity Finding Alternatives The Personal Element The UK Experience Conclusion Bibliography 9 FEDERAL-STATE FINANCIAL RELATIONS Introduction Vertical Fiscal Imbalance in Australia The Grants Methodology Tied Grants Inter-Governmental Financial Relations in Context Improving the Current Situation 1. Reducing the vertical fiscal imbalance a. Reducing expenditure responsibilities b. Increasing revenue raising capacity 2. Changing the grants distribution methodology Conclusion Bibliography 10 EQUITY Introduction Horizontal Equity Vertical Equity (1) Club Australia (2) The Liberal Theory (3) The Socialist View Summary Taxation Incidence Tax Mix, Government Expenditure and Tax Relief Conclusion Bibliography 11 MORAL EXEMPTIONS Introduction Exemptions for Charities Religious Institution Exemption Educational Institution Exemption Owner - Occupied Home Exemption Conclusion Bibliography 12 STAMP DUTY AND FINANCIAL TAXES IN THE 21ST CENTURY Introduction Stamp Duties Financial Institutions and Debits Tax 137 A Fresh Proposal - A Financial Institution Transaction Tax (The `FIT' Tax) Proposals for the Future of Financial Taxes Bibliography