Moore calls for greener tax system
Sydney Morning Herald
Wednesday October 28, 2009
IT HAS become a popular tradition in some of Australia€™s most plush corporate suites. As the end of the financial year approaches, the keys to luxury company cars are tossed around the office, with staff urged to take the car on a trip to the bush or the beach.The aim is to get the mileage up to take maximum advantage of the tax concessions on company vehicles. But the City of Sydney Council wants to reverse the tax bias in favour of public transport commuters and cyclists.In a submission to the Herald-backed Independent Public Inquiry into transport needs in Sydney, the council says train, tram, bus and bike riders should get tax concessions on travel costs. The submission suggests the policy could be introduced through concessional salary sacrifice or personal tax deductions of cycling equipment and public transport tickets.€śAustralia€™s current tax system actively encourages people to drive but does not reward those who make sustainable transport choices by cycling or catching public transport,€ť the Lord Mayor, Clover Moore, said.The Bureau of Infrastructure, Transport and Regional Economics calculates that traffic congestion costs Sydney close to $4 billion a year and expects the figure to rise to $8 billion by 2020 without drastic action. It also estimates the health and environmental costs of transport at $1.4 billion a year.Cr Moore estimated that a city worker earning about $80,000 a year could claim back $315 on the $1000 spent on a bike, helmet and lock.A commuter travelling into Sydney from Parramatta, also earning $80,000, would get a rebate of $630 on a $2000 annual yellow travel pass.
© 2009 Sydney Morning Herald