Burke Shire CEO challenges Productivity Commissioners to spend a week in Gulf

The report recommends abolishing zone tax offsets for people and businesses in remote and regional Australia, and took aim at fringe benefits tax concessions for employers in remote areas that apply to fuel, accommodation and food provided to employees.

The recommendations were slammed this week by Queensland LNP Senator Susan McDonald as "showing a breathtaking lack of understanding of life outside metropolitan areas".

Burke Shire CEO Clare Keenan said she absolutely agreed, and was appalled that it described solving the issues around zone tax as a 'Gordian Knot'.

"If it's impossible for them to solve sensibly I suggest they leave it to people who are better equipped intellectually," she said.

In November last year she warned that recommendations to wind down or cancel financial assistance for Australians in remote locations would be the straw that breaks the camel's back for rural communities throughout Australia.

A total of 199 submissions were made to the commission but Ms Keenan said the report's authors clearly had a set view and were unswayed by arguments put forward.

"The Productivity Commission's bottom line is that everyone takes a 3 per cent pay cut," she said.

"It's come down to the worst - it looks like fringe benefit tax will be axed.

"As it is, we can only bring executives in on short-term contracts; it's so hard to attract people."

Ms Keenan asked what the federal government would do with the $150 million it would save by removing these tax concessions.

"We've got no public transport, we're not popping down the street for coffees every day - we're saving our money for generators, big deep freezers, and air-conditioning, the types of things you need to live out here."

A key tenant of zone tax rebates was to acknowledge the difficulties of living in remote areas and Ms Keenan said floods and bushfires should be indicative of that.

"I am aware that (state) Minister Trad was also appalled and that the Under-Treasurer wrote a submission on this catastrophic pseudo-analysis that would see remote areas lose more, financially and in terms of population."

Ms Keenan questioned the sense in the federal government offering financial support for remote parts of north Australia through the post-monsoon rebuild and with its North Australia Infrastructure Fund on the one hand, and taking from the same regions by abolishing tax offsets.

"If there's no people left here, it will be for nothing," she said. "We are already expected to provide everything for our communities with a miniscule rateable population."

Ms Keenan took particular exception to an image in the report, asking whether there were no limits to the gender and race stereotypes being propagated by the authors.

"The illustration is indicative of the whole report," she said. "It's full of bizarre allegories and completely out of touch."

Both Ms Keenan and Ms McDonald noted that the federal minister responsible didn't have to accept the commission's recommendations, Ms McDonald describing the fact that they were recommendations as the report's only redeeming quality.

"I will be strongly recommending that this report be sent for immediate recycling and that we get the commission working on real solutions for people in the regions," Ms McDonald said.

Ms Keenan echoed that, saying she hoped the government would reject the report as the worthless piece of work it was.

She emphasised that she welcomed people questioning accepted standards but said there was nothing in the report that was of any use.

"I challenge these people to come to Burke Shire and bring their 'Gordian Knots' with them. Clearly, some smarts and some real life experience are needed."