Beyond rates

Taxation options for cashstrapped councils

LOCAL INCOME TAX Replicating the IRD would be complex and expensive, so a payroll tax would be more realistic for councils, although the self-employed could dodge payment

SHARING GOVERNMENT REVENUE Councils could take a cut of mineral extraction royalties on their patch, and share profits from property sales where land value has increased

USER CHARGES Water metering is already used by many councils, as is user-pays rubbish collection, but sewage disposal could be added, too

POLL TAX A uniform charge is already included in some councils’ rates to pay for community services such as libraries, parks and civil defence, capped at 30 per cent. This could be increased

LOCAL EXPENDITURE TAX A council supplement could be added to GST, or councils could tax specific spending, such as on hotel rooms

SELECTIVE TAXES These could target activities councils want to limit, like tobacco or alcohol consumption, or fund an area related to the tax, as seen in road tolling

REGIONAL FUEL TAXES Before being banned in 2013, these taxes led to nationwide fuel price hikes by companies trying to compensate for the tax

TRANSACTION TAXES Abolished by the Government because of their heavy burden relative to money raised. Australia still levies transaction tax in the form of stamp duty.