General News
15 January, 2025
Prime Minister not keen on supporting zonal tax offset
Anthony Albanese indicated he wouldn't be pushing for changes ahead of the federal election.
Prime Minister Anthony Albanese has ruled out increases to the zonal tax offset (ZTO) among his raft of upcoming election promises, claiming the current system is open to “distortions and manipulations.”
Speaking to media during his brief stopover in Mount Isa, Mr Albanese briefly criticised the ZTO system before launching into a broader attack on Opposition Leader Peter Dutton’s lack of detail about zonal tax reform.
As previously reported by North West Weekly, Mr Dutton told Mount Isa media in August that he believed there was a “moral argument” to support changes to taxation laws to retain skilled workers and address cost of living pressures across rural and remote communities.
“I think there are arguments for people who live in regional towns where you’re paying more for petrol, you’re paying more for your electricity, paying more for housing – there’s an additional cost that comes with it and you’re producing, in many cases, royalties and company tax that go to benefit people in capital cities,” Mr Dutton said during his trip to the city for the Mount Isa Rodeo.
“I just think they’re all common-sense discussions that we should have, and it should include a discussion around whether the current taxation arrangements are fit for purpose.”
While multiple federal coalition politicians have since expressed support for zonal tax offset reforms following Mr Dutton’s comments, which have also been widely circulated in metropolitan media, the coalition is yet to unveil any zonal tax proposals.
When asked by reporters in Mount Isa about whether he supported increases to the zonal tax offset, Mr Albanese instead used his response to launch a pre-election campaign attack on what he claimed was Mr Dutton’s unwillingness to respond to difficult questions.
“Thank you for reminding me of another thought bubble from Peter Dutton,” the Prime Minister answered.
“When (Mr Dutton) was in Mount Isa he promised different zone taxes. He hasn’t spoken about it since. He doesn’t speak about it in Canberra.
“It’s one message in one area but a different message for the rest of Australia.
“I think the idea of zonal taxation isn’t something that certainly has ever been on our agenda because of the distortions and manipulations that could occur.
“Peter Dutton has said that here. He needs to say and be held to account over whether that is his position. Is he taking it to the election? What costings have been done? What will be the impact on revenue? What will be the distortions that are made in the economy overall?
“He needs to be held to account for these thought bubbles such as that one and whether he stands by it.”