Government right in rejecting northern economic zone

The Queensland Government was right in rejecting the northern economic zone proposal from the Institute of Public Affairs, as reported in the Brisbane Times:

The concept is intended to encourage investment through reducing fringe benefits and payroll tax, securing property rights and reducing regulatory duplication.

However the idea of an over-arching economic zone failed to win find favour with the state government.

Queensland Treasurer Andrew Fraser said he had not seen any research or proposal that convinced him a Special Economic Zone was necessary.

Mr Fraser backed the government’s economic record, saying Queensland had the policies in place to usher in a “prosperous future.”

“Already, Queensland’s tax per capita levels are $501 less that the average of the other states and territories,” he said.

Instead of carving out regions of Australia as low-tax, low-regulation zones, we should improve tax and regulatory policy settings across the whole country. There is a risk that, if we create a special economic zone, there would be a migration of investment and skilled labour to the zone, adversely affecting the rest of the country and our ability to pay for public services.

This entry was posted in North Queensland. Bookmark the permalink.

1 Response to Government right in rejecting northern economic zone

  1. Pingback: Northern economic cooperation appears sensible, but may not last | Queensland Economy Watch

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