Newly appointed NSW Treasurer Dominic Perrottet says he is open to further privatisation of government-owned assets and overhauling state-based taxes in a signal he is contemplating an ambitious reform agenda before the 2019 election.
In his first interview since starting in the job, Mr Perrottet told Fairfax Media he had entered politics to make a difference.
"I'm not going to shy away from tough reform," he said.
"What I want to do is make sure that we have the best services and the best infrastructure for the people of the state."
Since coming to power in 2011 the Coalition has offered tens of billions of dollars of state-owned infrastructure for long term lease by the private sector, including Port Botany and Port Kembla and the electricity "poles and wires" companies Transgrid and Ausgrid.
A third electricity transaction, the 99 year lease of 50.4 per cent of Endeavour Energy is underway, as is the tender for a 35 year concession to manage the Land and Property Information service.
As finance minister Mr Perrottet oversaw the privatisation of $1.3 billion worth of government owned property, with another $900 million worth in the pipeline.
Mr Perrottet said privatisations are "a hallmark of the government in the sense that from that basic principle we want to make better use of what we've got".
The Treasurer insisted that when making such decisions "it's not starting from the position of privatisation at all."
"It's starting from the position of 'what is the service that we want to provide our citizens, what are the outcomes we want and then who is in the best place to provide that?'"
Mr Perrottet said he was currently focused on transactions such as Endeavour Energy and the Land and Property Information service.
But pressed if he was open to further transactions in the term of this government, he replied: "Absolutely. If there is a case that will provide better services to people in NSW, yes."
The 2011 Lambert Review commissioned by the then O'Farrell government recommended the long-term lease of the state-owned forestry business, Forests NSW. There has long been speculation about the privatisation of parts of Sydney Water, possibility the wastewater system, and sections of state's rail system.
However, Mr Perrottet stressed that "in terms of actual projects there are no plans outside [those already announced]".
On tax reform Mr Perrottet said he would not follow the lead of former planning minister Rob Stokes' and call on the Commonwealth to consider negative gearing changes to address housing affordability.
"I think that's more in the domain of the federal government to look at its tax policies," he said.
"It's our responsibility to look at the levers that we have in NSW. It's very easy for state governments to talk about federal areas of responsibility and tell them what they should do."
But Mr Perrottet said he was "very open to pursuing tax reform in NSW".
"I think good governments should always look at having a fairer and more equitable tax system that provides the most benefit for the people in the state," he said.
State taxes account for about 40 per cent of the NSW government's revenue, the most important being stamp duty, payroll tax, land tax and gambling taxes.
The 2011 Lambert Review outlined several tax reform options including the elimination of stamp duty.
It recommended a transition to a "Stamp Duty Replacement Tax" levied on the value of all land, regardless of how it is used or who owns it.
The review suggested changes to land tax and called for a lowering of the threshold at which payroll tax applies to small businesses linked to a cut in the rate.
The audit also recommended a state-wide system of road pricing linked to the removal of levies related to road use.
As finance minister Mr Perrottet last year said there was "no doubt" replacing stamp duty on property sales with a broad-based land tax would help to improve housing affordability.
But asked about this, he said: "I don't believe governments have made the case for land tax to replace stamp duty."
"If you are going to embark on substantial tax reform you need to bring people with you," he said.
"There are no plans by the government to introduce [a broad based] land tax".
On his broad approach, Mr Perrottet said: "You don't get into politics to stay still. You get into politics to reform. That's what I want to do".
