Tugun Bypass - Controversy

Controversy

On Sunday 18 May 2008, three days prior to the commencement of that year's State of Origin rugby league tournament, the New South Wales State Government hit the Queensland Government with the land tax charges for building part of the Tugun Bypass on NSW land. Premier Anna Bligh was mailed the land tax invoice of $235,607.40 from the NSW Government. She confirmed that the bill would be ignored by Queensland because they did not contribute to the $543 million project, saying "I don't expect the Maroons to give an inch to the New South Wales Blues this week, and I don't intend to either." Of the $543 million it cost to build the controversial bypass, the Federal Government contributed $120 million and Queensland paid the rest. About 4 km of the 7 km bypass is over the NSW border. "Of the total expenditure, $380 million – or 70 per cent – was spent in New South Wales," Ms Bligh said.

The NSW Office of State Revenue issued the bill to the Queensland Government on 6 May, asking for the payment for five years worth of land tax assessments. The NSW Chief Commissioner of State Revenue Tony Newbury said Queensland could pay in three instalments of $78,535.80 over the next three months. "Failure to comply with the payment options . . . will result in the imposition of interest and the instalment plan will be cancelled. Interest will be imposed on any outstanding land tax or penalty tax. The current rate is 14.37 per cent per annum calculated daily," he said. The assessments related to 16 properties in the Tweed Shire bought by the Department of Main Roads from 2001 for the bypass construction. Treasurer Andrew Fraser said at the time of the acquisition of the 16 properties, the NSW Government provided a transfer duty exemption to Queensland.