❓ Hon. George Cash questions the Treasurer about state tax abolitions under the COAG agreement and GST revenue offsets. The Treasurer details taxes abolished, those not required to be, and the impact on WA's budget.
AnsweredQoN 859Legislative Council
QuestionView source ↗
The PRESIDENT: The way we are going, Hon George Cash and the minister might want to exchange answers. Hon GEORGE CASH: The good news is that I have a choice of four questions if we get caught! I refer the Treasurer to the Government’s tax reforms, which have resulted in the abolition of some state taxes during the past two years. (1) Will the Treasurer list all the state taxes abolished by this Government in accordance the Council of Australian Governments’ goods and services tax reform agreement? (2) Were any taxes not abolished in accordance with the COAG agreement; if so, what were they? (3) Were any other taxes abolished other than those under the agreement; if so, what were they, and how much revenue did they generate annually? (4) Will the Treasurer confirm that, under the COAG tax reform agreement, GST revenue is to offset the revenue lost through the abolition of various state taxes? Hon NICK GRIFFITHS
AnswerView source ↗
I thank the member for some notice of this question. The Treasurer has provided the following response - (1) The Intergovernmental Agreement on the Reform of Commonwealth-State Financial Arrangements required the abolition of financial institutions duty and stamp duty on listed marketable securities from 1 July 2001. Those taxes were abolished by Western Australia in accordance with the IGA. Subject to review by the ministerial council of commonwealth and state Treasurers, the IGA also requires the cessation of debits tax from 1 July 2005. As part of the Government’s business tax reform package, legislation has already been passed by the Western Australian Parliament to abolish debits tax from 1 July 2005. (2) No. Under the IGA the need to retain stamp duty on non-residential conveyances, mortgages, leases, rental arrangements, unlisted marketable securities and cheques will be reviewed by the ministerial council in 2005. The IGA does not require any of these taxes to be abolished. Nonetheless, as part of the BTR package, from 1 July 2004 the Government abolished three of those taxes - namely, lease duty, cheque duty and unlisted share duty. (3) Yes. As part of the BTR package, stamp duty on life insurance and workers’ compensation insurance were also abolished. Stamp duty on life insurance raised around $3 million per annum and stamp duty on workers’ compensation insurance raised around $26 million per annum. (4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
Hon GEORGE CASH: The good news is that I have a choice of four questions if we get caught! I refer the Treasurer to the Government’s tax reforms, which have resulted in the abolition of some state taxes during the past two years. (1) Will the Treasurer list all the state taxes abolished by this Government in accordance the Council of Australian Governments’ goods and services tax reform agreement? (2) Were any taxes not abolished in accordance with the COAG agreement; if so, what were they? (3) Were any other taxes abolished other than those under the agreement; if so, what were they, and how much revenue did they generate annually? (4) Will the Treasurer confirm that, under the COAG tax reform agreement, GST revenue is to offset the revenue lost through the abolition of various state taxes? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) The Intergovernmental Agreement on the Reform of Commonwealth-State Financial Arrangements required the abolition of financial institutions duty and stamp duty on listed marketable securities from 1 July 2001. Those taxes were abolished by Western Australia in accordance with the IGA. Subject to review by the ministerial council of commonwealth and state Treasurers, the IGA also requires the cessation of debits tax from 1 July 2005. As part of the Government’s business tax reform package, legislation has already been passed by the Western Australian Parliament to abolish debits tax from 1 July 2005. (2) No. Under the IGA the need to retain stamp duty on non-residential conveyances, mortgages, leases, rental arrangements, unlisted marketable securities and cheques will be reviewed by the ministerial council in 2005. The IGA does not require any of these taxes to be abolished. Nonetheless, as part of the BTR package, from 1 July 2004 the Government abolished three of those taxes - namely, lease duty, cheque duty and unlisted share duty. (3) Yes. As part of the BTR package, stamp duty on life insurance and workers’ compensation insurance were also abolished. Stamp duty on life insurance raised around $3 million per annum and stamp duty on workers’ compensation insurance raised around $26 million per annum. (4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
I refer the Treasurer to the Government’s tax reforms, which have resulted in the abolition of some state taxes during the past two years. (1) Will the Treasurer list all the state taxes abolished by this Government in accordance the Council of Australian Governments’ goods and services tax reform agreement? (2) Were any taxes not abolished in accordance with the COAG agreement; if so, what were they? (3) Were any other taxes abolished other than those under the agreement; if so, what were they, and how much revenue did they generate annually? (4) Will the Treasurer confirm that, under the COAG tax reform agreement, GST revenue is to offset the revenue lost through the abolition of various state taxes? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) The Intergovernmental Agreement on the Reform of Commonwealth-State Financial Arrangements required the abolition of financial institutions duty and stamp duty on listed marketable securities from 1 July 2001. Those taxes were abolished by Western Australia in accordance with the IGA. Subject to review by the ministerial council of commonwealth and state Treasurers, the IGA also requires the cessation of debits tax from 1 July 2005. As part of the Government’s business tax reform package, legislation has already been passed by the Western Australian Parliament to abolish debits tax from 1 July 2005. (2) No. Under the IGA the need to retain stamp duty on non-residential conveyances, mortgages, leases, rental arrangements, unlisted marketable securities and cheques will be reviewed by the ministerial council in 2005. The IGA does not require any of these taxes to be abolished. Nonetheless, as part of the BTR package, from 1 July 2004 the Government abolished three of those taxes - namely, lease duty, cheque duty and unlisted share duty. (3) Yes. As part of the BTR package, stamp duty on life insurance and workers’ compensation insurance were also abolished. Stamp duty on life insurance raised around $3 million per annum and stamp duty on workers’ compensation insurance raised around $26 million per annum. (4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
(1) Will the Treasurer list all the state taxes abolished by this Government in accordance the Council of Australian Governments’ goods and services tax reform agreement? (2) Were any taxes not abolished in accordance with the COAG agreement; if so, what were they? (3) Were any other taxes abolished other than those under the agreement; if so, what were they, and how much revenue did they generate annually? (4) Will the Treasurer confirm that, under the COAG tax reform agreement, GST revenue is to offset the revenue lost through the abolition of various state taxes? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) The Intergovernmental Agreement on the Reform of Commonwealth-State Financial Arrangements required the abolition of financial institutions duty and stamp duty on listed marketable securities from 1 July 2001. Those taxes were abolished by Western Australia in accordance with the IGA. Subject to review by the ministerial council of commonwealth and state Treasurers, the IGA also requires the cessation of debits tax from 1 July 2005. As part of the Government’s business tax reform package, legislation has already been passed by the Western Australian Parliament to abolish debits tax from 1 July 2005. (2) No. Under the IGA the need to retain stamp duty on non-residential conveyances, mortgages, leases, rental arrangements, unlisted marketable securities and cheques will be reviewed by the ministerial council in 2005. The IGA does not require any of these taxes to be abolished. Nonetheless, as part of the BTR package, from 1 July 2004 the Government abolished three of those taxes - namely, lease duty, cheque duty and unlisted share duty. (3) Yes. As part of the BTR package, stamp duty on life insurance and workers’ compensation insurance were also abolished. Stamp duty on life insurance raised around $3 million per annum and stamp duty on workers’ compensation insurance raised around $26 million per annum. (4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
(2) Were any taxes not abolished in accordance with the COAG agreement; if so, what were they? (3) Were any other taxes abolished other than those under the agreement; if so, what were they, and how much revenue did they generate annually? (4) Will the Treasurer confirm that, under the COAG tax reform agreement, GST revenue is to offset the revenue lost through the abolition of various state taxes? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) The Intergovernmental Agreement on the Reform of Commonwealth-State Financial Arrangements required the abolition of financial institutions duty and stamp duty on listed marketable securities from 1 July 2001. Those taxes were abolished by Western Australia in accordance with the IGA. Subject to review by the ministerial council of commonwealth and state Treasurers, the IGA also requires the cessation of debits tax from 1 July 2005. As part of the Government’s business tax reform package, legislation has already been passed by the Western Australian Parliament to abolish debits tax from 1 July 2005. (2) No. Under the IGA the need to retain stamp duty on non-residential conveyances, mortgages, leases, rental arrangements, unlisted marketable securities and cheques will be reviewed by the ministerial council in 2005. The IGA does not require any of these taxes to be abolished. Nonetheless, as part of the BTR package, from 1 July 2004 the Government abolished three of those taxes - namely, lease duty, cheque duty and unlisted share duty. (3) Yes. As part of the BTR package, stamp duty on life insurance and workers’ compensation insurance were also abolished. Stamp duty on life insurance raised around $3 million per annum and stamp duty on workers’ compensation insurance raised around $26 million per annum. (4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
(3) Were any other taxes abolished other than those under the agreement; if so, what were they, and how much revenue did they generate annually? (4) Will the Treasurer confirm that, under the COAG tax reform agreement, GST revenue is to offset the revenue lost through the abolition of various state taxes? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) The Intergovernmental Agreement on the Reform of Commonwealth-State Financial Arrangements required the abolition of financial institutions duty and stamp duty on listed marketable securities from 1 July 2001. Those taxes were abolished by Western Australia in accordance with the IGA. Subject to review by the ministerial council of commonwealth and state Treasurers, the IGA also requires the cessation of debits tax from 1 July 2005. As part of the Government’s business tax reform package, legislation has already been passed by the Western Australian Parliament to abolish debits tax from 1 July 2005. (2) No. Under the IGA the need to retain stamp duty on non-residential conveyances, mortgages, leases, rental arrangements, unlisted marketable securities and cheques will be reviewed by the ministerial council in 2005. The IGA does not require any of these taxes to be abolished. Nonetheless, as part of the BTR package, from 1 July 2004 the Government abolished three of those taxes - namely, lease duty, cheque duty and unlisted share duty. (3) Yes. As part of the BTR package, stamp duty on life insurance and workers’ compensation insurance were also abolished. Stamp duty on life insurance raised around $3 million per annum and stamp duty on workers’ compensation insurance raised around $26 million per annum. (4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
(4) Will the Treasurer confirm that, under the COAG tax reform agreement, GST revenue is to offset the revenue lost through the abolition of various state taxes? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) The Intergovernmental Agreement on the Reform of Commonwealth-State Financial Arrangements required the abolition of financial institutions duty and stamp duty on listed marketable securities from 1 July 2001. Those taxes were abolished by Western Australia in accordance with the IGA. Subject to review by the ministerial council of commonwealth and state Treasurers, the IGA also requires the cessation of debits tax from 1 July 2005. As part of the Government’s business tax reform package, legislation has already been passed by the Western Australian Parliament to abolish debits tax from 1 July 2005. (2) No. Under the IGA the need to retain stamp duty on non-residential conveyances, mortgages, leases, rental arrangements, unlisted marketable securities and cheques will be reviewed by the ministerial council in 2005. The IGA does not require any of these taxes to be abolished. Nonetheless, as part of the BTR package, from 1 July 2004 the Government abolished three of those taxes - namely, lease duty, cheque duty and unlisted share duty. (3) Yes. As part of the BTR package, stamp duty on life insurance and workers’ compensation insurance were also abolished. Stamp duty on life insurance raised around $3 million per annum and stamp duty on workers’ compensation insurance raised around $26 million per annum. (4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) The Intergovernmental Agreement on the Reform of Commonwealth-State Financial Arrangements required the abolition of financial institutions duty and stamp duty on listed marketable securities from 1 July 2001. Those taxes were abolished by Western Australia in accordance with the IGA. Subject to review by the ministerial council of commonwealth and state Treasurers, the IGA also requires the cessation of debits tax from 1 July 2005. As part of the Government’s business tax reform package, legislation has already been passed by the Western Australian Parliament to abolish debits tax from 1 July 2005. (2) No. Under the IGA the need to retain stamp duty on non-residential conveyances, mortgages, leases, rental arrangements, unlisted marketable securities and cheques will be reviewed by the ministerial council in 2005. The IGA does not require any of these taxes to be abolished. Nonetheless, as part of the BTR package, from 1 July 2004 the Government abolished three of those taxes - namely, lease duty, cheque duty and unlisted share duty. (3) Yes. As part of the BTR package, stamp duty on life insurance and workers’ compensation insurance were also abolished. Stamp duty on life insurance raised around $3 million per annum and stamp duty on workers’ compensation insurance raised around $26 million per annum. (4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
I thank the member for some notice of this question. The Treasurer has provided the following response - (1) The Intergovernmental Agreement on the Reform of Commonwealth-State Financial Arrangements required the abolition of financial institutions duty and stamp duty on listed marketable securities from 1 July 2001. Those taxes were abolished by Western Australia in accordance with the IGA. Subject to review by the ministerial council of commonwealth and state Treasurers, the IGA also requires the cessation of debits tax from 1 July 2005. As part of the Government’s business tax reform package, legislation has already been passed by the Western Australian Parliament to abolish debits tax from 1 July 2005. (2) No. Under the IGA the need to retain stamp duty on non-residential conveyances, mortgages, leases, rental arrangements, unlisted marketable securities and cheques will be reviewed by the ministerial council in 2005. The IGA does not require any of these taxes to be abolished. Nonetheless, as part of the BTR package, from 1 July 2004 the Government abolished three of those taxes - namely, lease duty, cheque duty and unlisted share duty. (3) Yes. As part of the BTR package, stamp duty on life insurance and workers’ compensation insurance were also abolished. Stamp duty on life insurance raised around $3 million per annum and stamp duty on workers’ compensation insurance raised around $26 million per annum. (4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
(1) The Intergovernmental Agreement on the Reform of Commonwealth-State Financial Arrangements required the abolition of financial institutions duty and stamp duty on listed marketable securities from 1 July 2001. Those taxes were abolished by Western Australia in accordance with the IGA. Subject to review by the ministerial council of commonwealth and state Treasurers, the IGA also requires the cessation of debits tax from 1 July 2005. As part of the Government’s business tax reform package, legislation has already been passed by the Western Australian Parliament to abolish debits tax from 1 July 2005. (2) No. Under the IGA the need to retain stamp duty on non-residential conveyances, mortgages, leases, rental arrangements, unlisted marketable securities and cheques will be reviewed by the ministerial council in 2005. The IGA does not require any of these taxes to be abolished. Nonetheless, as part of the BTR package, from 1 July 2004 the Government abolished three of those taxes - namely, lease duty, cheque duty and unlisted share duty. (3) Yes. As part of the BTR package, stamp duty on life insurance and workers’ compensation insurance were also abolished. Stamp duty on life insurance raised around $3 million per annum and stamp duty on workers’ compensation insurance raised around $26 million per annum. (4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
(2) No. Under the IGA the need to retain stamp duty on non-residential conveyances, mortgages, leases, rental arrangements, unlisted marketable securities and cheques will be reviewed by the ministerial council in 2005. The IGA does not require any of these taxes to be abolished. Nonetheless, as part of the BTR package, from 1 July 2004 the Government abolished three of those taxes - namely, lease duty, cheque duty and unlisted share duty. (3) Yes. As part of the BTR package, stamp duty on life insurance and workers’ compensation insurance were also abolished. Stamp duty on life insurance raised around $3 million per annum and stamp duty on workers’ compensation insurance raised around $26 million per annum. (4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
(3) Yes. As part of the BTR package, stamp duty on life insurance and workers’ compensation insurance were also abolished. Stamp duty on life insurance raised around $3 million per annum and stamp duty on workers’ compensation insurance raised around $26 million per annum. (4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
(4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
Hon GEORGE CASH: The good news is that I have a choice of four questions if we get caught! I refer the Treasurer to the Government’s tax reforms, which have resulted in the abolition of some state taxes during the past two years. (1) Will the Treasurer list all the state taxes abolished by this Government in accordance the Council of Australian Governments’ goods and services tax reform agreement? (2) Were any taxes not abolished in accordance with the COAG agreement; if so, what were they? (3) Were any other taxes abolished other than those under the agreement; if so, what were they, and how much revenue did they generate annually? (4) Will the Treasurer confirm that, under the COAG tax reform agreement, GST revenue is to offset the revenue lost through the abolition of various state taxes? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) The Intergovernmental Agreement on the Reform of Commonwealth-State Financial Arrangements required the abolition of financial institutions duty and stamp duty on listed marketable securities from 1 July 2001. Those taxes were abolished by Western Australia in accordance with the IGA. Subject to review by the ministerial council of commonwealth and state Treasurers, the IGA also requires the cessation of debits tax from 1 July 2005. As part of the Government’s business tax reform package, legislation has already been passed by the Western Australian Parliament to abolish debits tax from 1 July 2005. (2) No. Under the IGA the need to retain stamp duty on non-residential conveyances, mortgages, leases, rental arrangements, unlisted marketable securities and cheques will be reviewed by the ministerial council in 2005. The IGA does not require any of these taxes to be abolished. Nonetheless, as part of the BTR package, from 1 July 2004 the Government abolished three of those taxes - namely, lease duty, cheque duty and unlisted share duty. (3) Yes. As part of the BTR package, stamp duty on life insurance and workers’ compensation insurance were also abolished. Stamp duty on life insurance raised around $3 million per annum and stamp duty on workers’ compensation insurance raised around $26 million per annum. (4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
I refer the Treasurer to the Government’s tax reforms, which have resulted in the abolition of some state taxes during the past two years. (1) Will the Treasurer list all the state taxes abolished by this Government in accordance the Council of Australian Governments’ goods and services tax reform agreement? (2) Were any taxes not abolished in accordance with the COAG agreement; if so, what were they? (3) Were any other taxes abolished other than those under the agreement; if so, what were they, and how much revenue did they generate annually? (4) Will the Treasurer confirm that, under the COAG tax reform agreement, GST revenue is to offset the revenue lost through the abolition of various state taxes? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) The Intergovernmental Agreement on the Reform of Commonwealth-State Financial Arrangements required the abolition of financial institutions duty and stamp duty on listed marketable securities from 1 July 2001. Those taxes were abolished by Western Australia in accordance with the IGA. Subject to review by the ministerial council of commonwealth and state Treasurers, the IGA also requires the cessation of debits tax from 1 July 2005. As part of the Government’s business tax reform package, legislation has already been passed by the Western Australian Parliament to abolish debits tax from 1 July 2005. (2) No. Under the IGA the need to retain stamp duty on non-residential conveyances, mortgages, leases, rental arrangements, unlisted marketable securities and cheques will be reviewed by the ministerial council in 2005. The IGA does not require any of these taxes to be abolished. Nonetheless, as part of the BTR package, from 1 July 2004 the Government abolished three of those taxes - namely, lease duty, cheque duty and unlisted share duty. (3) Yes. As part of the BTR package, stamp duty on life insurance and workers’ compensation insurance were also abolished. Stamp duty on life insurance raised around $3 million per annum and stamp duty on workers’ compensation insurance raised around $26 million per annum. (4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
(1) Will the Treasurer list all the state taxes abolished by this Government in accordance the Council of Australian Governments’ goods and services tax reform agreement? (2) Were any taxes not abolished in accordance with the COAG agreement; if so, what were they? (3) Were any other taxes abolished other than those under the agreement; if so, what were they, and how much revenue did they generate annually? (4) Will the Treasurer confirm that, under the COAG tax reform agreement, GST revenue is to offset the revenue lost through the abolition of various state taxes? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) The Intergovernmental Agreement on the Reform of Commonwealth-State Financial Arrangements required the abolition of financial institutions duty and stamp duty on listed marketable securities from 1 July 2001. Those taxes were abolished by Western Australia in accordance with the IGA. Subject to review by the ministerial council of commonwealth and state Treasurers, the IGA also requires the cessation of debits tax from 1 July 2005. As part of the Government’s business tax reform package, legislation has already been passed by the Western Australian Parliament to abolish debits tax from 1 July 2005. (2) No. Under the IGA the need to retain stamp duty on non-residential conveyances, mortgages, leases, rental arrangements, unlisted marketable securities and cheques will be reviewed by the ministerial council in 2005. The IGA does not require any of these taxes to be abolished. Nonetheless, as part of the BTR package, from 1 July 2004 the Government abolished three of those taxes - namely, lease duty, cheque duty and unlisted share duty. (3) Yes. As part of the BTR package, stamp duty on life insurance and workers’ compensation insurance were also abolished. Stamp duty on life insurance raised around $3 million per annum and stamp duty on workers’ compensation insurance raised around $26 million per annum. (4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
(2) Were any taxes not abolished in accordance with the COAG agreement; if so, what were they? (3) Were any other taxes abolished other than those under the agreement; if so, what were they, and how much revenue did they generate annually? (4) Will the Treasurer confirm that, under the COAG tax reform agreement, GST revenue is to offset the revenue lost through the abolition of various state taxes? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) The Intergovernmental Agreement on the Reform of Commonwealth-State Financial Arrangements required the abolition of financial institutions duty and stamp duty on listed marketable securities from 1 July 2001. Those taxes were abolished by Western Australia in accordance with the IGA. Subject to review by the ministerial council of commonwealth and state Treasurers, the IGA also requires the cessation of debits tax from 1 July 2005. As part of the Government’s business tax reform package, legislation has already been passed by the Western Australian Parliament to abolish debits tax from 1 July 2005. (2) No. Under the IGA the need to retain stamp duty on non-residential conveyances, mortgages, leases, rental arrangements, unlisted marketable securities and cheques will be reviewed by the ministerial council in 2005. The IGA does not require any of these taxes to be abolished. Nonetheless, as part of the BTR package, from 1 July 2004 the Government abolished three of those taxes - namely, lease duty, cheque duty and unlisted share duty. (3) Yes. As part of the BTR package, stamp duty on life insurance and workers’ compensation insurance were also abolished. Stamp duty on life insurance raised around $3 million per annum and stamp duty on workers’ compensation insurance raised around $26 million per annum. (4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
(3) Were any other taxes abolished other than those under the agreement; if so, what were they, and how much revenue did they generate annually? (4) Will the Treasurer confirm that, under the COAG tax reform agreement, GST revenue is to offset the revenue lost through the abolition of various state taxes? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) The Intergovernmental Agreement on the Reform of Commonwealth-State Financial Arrangements required the abolition of financial institutions duty and stamp duty on listed marketable securities from 1 July 2001. Those taxes were abolished by Western Australia in accordance with the IGA. Subject to review by the ministerial council of commonwealth and state Treasurers, the IGA also requires the cessation of debits tax from 1 July 2005. As part of the Government’s business tax reform package, legislation has already been passed by the Western Australian Parliament to abolish debits tax from 1 July 2005. (2) No. Under the IGA the need to retain stamp duty on non-residential conveyances, mortgages, leases, rental arrangements, unlisted marketable securities and cheques will be reviewed by the ministerial council in 2005. The IGA does not require any of these taxes to be abolished. Nonetheless, as part of the BTR package, from 1 July 2004 the Government abolished three of those taxes - namely, lease duty, cheque duty and unlisted share duty. (3) Yes. As part of the BTR package, stamp duty on life insurance and workers’ compensation insurance were also abolished. Stamp duty on life insurance raised around $3 million per annum and stamp duty on workers’ compensation insurance raised around $26 million per annum. (4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
(4) Will the Treasurer confirm that, under the COAG tax reform agreement, GST revenue is to offset the revenue lost through the abolition of various state taxes? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) The Intergovernmental Agreement on the Reform of Commonwealth-State Financial Arrangements required the abolition of financial institutions duty and stamp duty on listed marketable securities from 1 July 2001. Those taxes were abolished by Western Australia in accordance with the IGA. Subject to review by the ministerial council of commonwealth and state Treasurers, the IGA also requires the cessation of debits tax from 1 July 2005. As part of the Government’s business tax reform package, legislation has already been passed by the Western Australian Parliament to abolish debits tax from 1 July 2005. (2) No. Under the IGA the need to retain stamp duty on non-residential conveyances, mortgages, leases, rental arrangements, unlisted marketable securities and cheques will be reviewed by the ministerial council in 2005. The IGA does not require any of these taxes to be abolished. Nonetheless, as part of the BTR package, from 1 July 2004 the Government abolished three of those taxes - namely, lease duty, cheque duty and unlisted share duty. (3) Yes. As part of the BTR package, stamp duty on life insurance and workers’ compensation insurance were also abolished. Stamp duty on life insurance raised around $3 million per annum and stamp duty on workers’ compensation insurance raised around $26 million per annum. (4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer has provided the following response - (1) The Intergovernmental Agreement on the Reform of Commonwealth-State Financial Arrangements required the abolition of financial institutions duty and stamp duty on listed marketable securities from 1 July 2001. Those taxes were abolished by Western Australia in accordance with the IGA. Subject to review by the ministerial council of commonwealth and state Treasurers, the IGA also requires the cessation of debits tax from 1 July 2005. As part of the Government’s business tax reform package, legislation has already been passed by the Western Australian Parliament to abolish debits tax from 1 July 2005. (2) No. Under the IGA the need to retain stamp duty on non-residential conveyances, mortgages, leases, rental arrangements, unlisted marketable securities and cheques will be reviewed by the ministerial council in 2005. The IGA does not require any of these taxes to be abolished. Nonetheless, as part of the BTR package, from 1 July 2004 the Government abolished three of those taxes - namely, lease duty, cheque duty and unlisted share duty. (3) Yes. As part of the BTR package, stamp duty on life insurance and workers’ compensation insurance were also abolished. Stamp duty on life insurance raised around $3 million per annum and stamp duty on workers’ compensation insurance raised around $26 million per annum. (4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
I thank the member for some notice of this question. The Treasurer has provided the following response - (1) The Intergovernmental Agreement on the Reform of Commonwealth-State Financial Arrangements required the abolition of financial institutions duty and stamp duty on listed marketable securities from 1 July 2001. Those taxes were abolished by Western Australia in accordance with the IGA. Subject to review by the ministerial council of commonwealth and state Treasurers, the IGA also requires the cessation of debits tax from 1 July 2005. As part of the Government’s business tax reform package, legislation has already been passed by the Western Australian Parliament to abolish debits tax from 1 July 2005. (2) No. Under the IGA the need to retain stamp duty on non-residential conveyances, mortgages, leases, rental arrangements, unlisted marketable securities and cheques will be reviewed by the ministerial council in 2005. The IGA does not require any of these taxes to be abolished. Nonetheless, as part of the BTR package, from 1 July 2004 the Government abolished three of those taxes - namely, lease duty, cheque duty and unlisted share duty. (3) Yes. As part of the BTR package, stamp duty on life insurance and workers’ compensation insurance were also abolished. Stamp duty on life insurance raised around $3 million per annum and stamp duty on workers’ compensation insurance raised around $26 million per annum. (4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
(1) The Intergovernmental Agreement on the Reform of Commonwealth-State Financial Arrangements required the abolition of financial institutions duty and stamp duty on listed marketable securities from 1 July 2001. Those taxes were abolished by Western Australia in accordance with the IGA. Subject to review by the ministerial council of commonwealth and state Treasurers, the IGA also requires the cessation of debits tax from 1 July 2005. As part of the Government’s business tax reform package, legislation has already been passed by the Western Australian Parliament to abolish debits tax from 1 July 2005. (2) No. Under the IGA the need to retain stamp duty on non-residential conveyances, mortgages, leases, rental arrangements, unlisted marketable securities and cheques will be reviewed by the ministerial council in 2005. The IGA does not require any of these taxes to be abolished. Nonetheless, as part of the BTR package, from 1 July 2004 the Government abolished three of those taxes - namely, lease duty, cheque duty and unlisted share duty. (3) Yes. As part of the BTR package, stamp duty on life insurance and workers’ compensation insurance were also abolished. Stamp duty on life insurance raised around $3 million per annum and stamp duty on workers’ compensation insurance raised around $26 million per annum. (4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
(2) No. Under the IGA the need to retain stamp duty on non-residential conveyances, mortgages, leases, rental arrangements, unlisted marketable securities and cheques will be reviewed by the ministerial council in 2005. The IGA does not require any of these taxes to be abolished. Nonetheless, as part of the BTR package, from 1 July 2004 the Government abolished three of those taxes - namely, lease duty, cheque duty and unlisted share duty. (3) Yes. As part of the BTR package, stamp duty on life insurance and workers’ compensation insurance were also abolished. Stamp duty on life insurance raised around $3 million per annum and stamp duty on workers’ compensation insurance raised around $26 million per annum. (4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
(3) Yes. As part of the BTR package, stamp duty on life insurance and workers’ compensation insurance were also abolished. Stamp duty on life insurance raised around $3 million per annum and stamp duty on workers’ compensation insurance raised around $26 million per annum. (4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
(4) Under the IGA, the Commonwealth is required to top up goods and services tax payments to the States with budget-balancing assistance grants on the premise of ensuring that no State’s budget is worse off as a result of the GST funding arrangements. Under these arrangements, Western Australia received no financial benefit in 2000-01 or 2001-02, which were the first two years of the GST. At the March 2002 Ministerial Council of Treasurers meeting, the commonwealth Treasurer unilaterally altered the agreed arrangements by removing the allowance for inflation-linked increases in fuel revenues. This reduced the level of budget-balancing assistance paid to the States by an estimated $300 million, leaving them worse off as a result of the goods and services tax-related tax reforms in 2002-03 and 2003-04. In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
In 2002-03, the first year in which the commonwealth Treasurer’s decision on fuel revenues took effect, the revenues, including GST grants received under the GST tax reforms, were less than what was needed to cover Western Australia’s lost revenues and new expenditure responsibilities as a result of tax reform. The State did not receive top-up payments from the Commonwealth in 2003-04.
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