14 December 2006

Federal Labor’s tacit support for tax on broadband

The Federal Labor Party’s silence on a proposed telecommunications tax in the Australian Capital Territory is a tacit endorsement of a tax on broadband, the Minister for Communications, Information Technology and the Arts, Senator Helen Coonan, said today.

The Stanhope Labor Government has announced a new ‘Utilities Land Use Permit Tax’ which slaps a tax on each kilometre of new broadband cable laid in the ACT. The broadband proposition in the ACT is simple: the more broadband you roll out, the more you get taxed.

As the ACT Labor Government prepares to debate legislation to introduce a tax on telecommunications infrastructure, industry has angrily united to oppose the move.

“But where has the Federal ALP been on this issue? ACT ALP Senator Kate Lundy’s silence has been deafening as has the silence of the missing in action Labor communications spokesman Senator Stephen Conroy,” Senator Coonan said.

“Federal Labor could put a stop to this ludicrous disincentive for investment in broadband infrastructure – but their silence demonstrates their true position on communications in this country – they couldn’t care less. That is why Federal Labor’s only policy on communications is to rob Australian communities of money set aside to rollout broadband, improve mobile phone coverage and connect our schools and hospitals to high speed networks.

“Labor has not committed one extra cent to communications in this country and now they will tax anyone who dares to make an investment to improve services. Australians are now taking up broadband faster than any other country in the world except Denmark and there are now around four million premises – that is, homes, businesses, schools, and libraries - connected to high speed broadband.

“Unfortunately for homes, businesses and schools in the ACT, next generation broadband won’t be on the menu if Labor’s broadband tax is introduced. These costs will also be passed onto ACT consumers, resulting in a tax on actually using broadband.

“The Australian Government is spending more than $1 billion under the Connect Australia package to ensure equitable access to fast broadband. But it is ludicrous for Australian taxpayers to subsidise broadband only to have it funnelled straight into State and Territory Government coffers via a broadband tax.

“Broadband users in the ACT should not be penalised for the ACT Labor Government’s economic mismanagement.”