Importance of State Election Highlighted

The importance of the NSW State election next March has been thrown into stark relief by the decision of the two independents currently propping up the minority Labor government crossing the floor to vote with the "opposition". On a minor amendment only but it shows just how fragile the federal government arrangement is; too fragile for a reform agenda and reform, for business, means relief. Without reforms to the tax system and a host of unwieldy compliance issues, small business in particular will continue to be hamstrung in their efforts to achieve productivity and profitability.

Therefore, the State election in March becomes even more critical than usual. While the State government cannot make changes to federal legislation, it can bring in a number of forms of legislation that can alleviate impediments to business as well as providing a stimulus of its own to urban and regional economies. Transport springs to mind but then so does the one piece of legislation that has characterised the often poor judgement of this series of Labor governments - the punitive poker machine tax. The vital licenced club industry in NSW has been struggling and shrinking in both size and community investment as this draconian impost has drastically reduced profits and the ability to invest and endow.

Both parties have it in their power to reduce the tax to a level that restores the clubs' liquidity and stimulates regional community spending and employment. It's that simple; reduce this tax and everyone benefits. It is far better that this money remain in the industry and its communities than having it rest in government coffers for "strategic" spending.

We shall see if the parties have learned from the reproach they received at the federal election.