Premier Carmen Lawrence warned today that State taxes and charges would rise dramatically under a Court government to make up for revenue shortfalls when payroll tax was abolished.
"The Liberal Party's promise to abolish payroll tax is predicated on the Federal Opposition winning the coming Federal election and implementing Fightback," Dr Lawrence said.
"Without the Federal Opposition in power in Canberra, Mr Court's promise falls in a hole. He will then look to raising State taxes to make up the $500 million that payroll tax earns in Western Australia each year."
The Premier said Mr Court made the stark admission during an ABC radio interview this morning, in which he said his government would have to look at other means of raising the taxes if Dr Hewson was not successful at the polls.
She challenged Mr Court to immediately detail what taxes and charges would be subject to increase.
The Lawrence Government has already exempted 90 per cent of the State's businesses from paying payroll tax and will increase this by a further 1,400 employers upon re-election.
"Our commitment to small business began with the implementation of the WA Advantage package and will continue if we are re-elected," the Premier said.
"Our strategy does not rely on the success or otherwise of the Federal Labor Party at the polls.
"In contrast, much of the State Liberals' election platform hinges on the implementation of the Federal Fightback policy, and without Fightback, Mr Court will be unable to make good many of promises he has made.
"In fact, without Federal Fightback he will undertake all the Kennett-style reforms of privatisation, closing schools, cutting services and increasing taxes and charges without any corresponding compensation to those affected.
"This occurs because he is committed to balancing the budget, eliminating debt, guaranteeing minimum prices and abolishing payroll tax.
"Without Hewson and Federal Fightback, Western Australians can expect higher taxes. With Fightback, they will pay more with GST."
