A recent study has revealed that tax on businesses is much higher in South Australia than any other state in the country, and "urgent" cuts are required if the authorities want to attract any new investments.

As per official figures released by the Institute of Public Affairs, in SA, an average medium sized business is taxed about $247,437 per year, which is nearly $5000 more on "payroll tax, land tax and various stamp duties" as compared to similar sized businesses in New South Wales.

While stressing that the huge taxes on properties are putting the state at a significant disadvantage, research fellow Julie Novak said, "The Rann Government urgently needs to urgently cut back its property taxes if South Australia is to be seen as an attractive place to do business. Even in areas where the state has some tax advantages, say in payroll tax, the state should work to continue to reduce taxes to create new jobs and growth in the future".

The Opposition of the state, in wake of the figures, has now promised that it would make sure that SA's taxation system is "fairer" if the next elections bring the party in power. As confirmed by the Liberal finance spokesman Steven Griffiths, his party has already planned that the threshold on land taxes would be increased from $110,000 to $250,000.