❓ WA Treasurer provides figures for GST revenue grants and budget balancing assistance received from the Commonwealth for financial years 2001-02 to 2005-06, highlighting the volatility of Commonwealth estimates and their impact on state budget planning.
AnsweredQoN 3257Legislative Assembly
QuestionView source ↗
(b) 2001-2002; (c) 2002-2003; and (d) 2003-2004?
(c) 2002-2003; and (d) 2003-2004?
(d) 2003-2004?
(b) 2005-2006?
The GST was introduced by the Commonwealth Government and agreed to by the States because it was seen to be a growth tax, in that it would increase at a faster rate than the revenues they were giving up. The States also expected that it would be a stable funding arrangement. While the GST was introduced in 2000-01, Western Australia received budget balancing assistance to ensure that we were no worse off than under previous arrangements, until 2003-04. Nevertheless, Western Australia still provided a net fiscal subsidy to the nation of over $2 billion per annum. The Government forms its budget based on advice from the Commonwealth on the expected value of GST payments, however, the State Budget is delivered prior to the Commonwealth and this means that we cannot incorporate the Commonwealth Budget estimates in our budget. The Commonwealth underestimated GST collections in the last two financial years, but overestimated in 2001-02. Its estimates oscillated wildly in the first year of operation. This makes it very difficult for the State to plan its finances for the years ahead. As soon as Western Australia managed to secure a better deal from the Commonwealth Grants Commission in terms of the distribution of Commonwealth grants, we have given back to the community in terms of tax relief. In answer to the Member's specific question: (1) (a) $2,374.6 million GST revenue grants, plus $213.0 million budget balancing assistance; (b) $2,518.1 million GST revenue grants, plus $351.7 million budget balancing assistance; (c) $2,910.2 million GST revenue grants, plus $44.1 million budget balancing assistance; and (d) $3,157.9 million GST revenue grants. (2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
While the GST was introduced in 2000-01, Western Australia received budget balancing assistance to ensure that we were no worse off than under previous arrangements, until 2003-04. Nevertheless, Western Australia still provided a net fiscal subsidy to the nation of over $2 billion per annum. The Government forms its budget based on advice from the Commonwealth on the expected value of GST payments, however, the State Budget is delivered prior to the Commonwealth and this means that we cannot incorporate the Commonwealth Budget estimates in our budget. The Commonwealth underestimated GST collections in the last two financial years, but overestimated in 2001-02. Its estimates oscillated wildly in the first year of operation. This makes it very difficult for the State to plan its finances for the years ahead. As soon as Western Australia managed to secure a better deal from the Commonwealth Grants Commission in terms of the distribution of Commonwealth grants, we have given back to the community in terms of tax relief. In answer to the Member's specific question: (1) (a) $2,374.6 million GST revenue grants, plus $213.0 million budget balancing assistance; (b) $2,518.1 million GST revenue grants, plus $351.7 million budget balancing assistance; (c) $2,910.2 million GST revenue grants, plus $44.1 million budget balancing assistance; and (d) $3,157.9 million GST revenue grants. (2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
Nevertheless, Western Australia still provided a net fiscal subsidy to the nation of over $2 billion per annum. The Government forms its budget based on advice from the Commonwealth on the expected value of GST payments, however, the State Budget is delivered prior to the Commonwealth and this means that we cannot incorporate the Commonwealth Budget estimates in our budget. The Commonwealth underestimated GST collections in the last two financial years, but overestimated in 2001-02. Its estimates oscillated wildly in the first year of operation. This makes it very difficult for the State to plan its finances for the years ahead. As soon as Western Australia managed to secure a better deal from the Commonwealth Grants Commission in terms of the distribution of Commonwealth grants, we have given back to the community in terms of tax relief. In answer to the Member's specific question: (1) (a) $2,374.6 million GST revenue grants, plus $213.0 million budget balancing assistance; (b) $2,518.1 million GST revenue grants, plus $351.7 million budget balancing assistance; (c) $2,910.2 million GST revenue grants, plus $44.1 million budget balancing assistance; and (d) $3,157.9 million GST revenue grants. (2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
The Government forms its budget based on advice from the Commonwealth on the expected value of GST payments, however, the State Budget is delivered prior to the Commonwealth and this means that we cannot incorporate the Commonwealth Budget estimates in our budget. The Commonwealth underestimated GST collections in the last two financial years, but overestimated in 2001-02. Its estimates oscillated wildly in the first year of operation. This makes it very difficult for the State to plan its finances for the years ahead. As soon as Western Australia managed to secure a better deal from the Commonwealth Grants Commission in terms of the distribution of Commonwealth grants, we have given back to the community in terms of tax relief. In answer to the Member's specific question: (1) (a) $2,374.6 million GST revenue grants, plus $213.0 million budget balancing assistance; (b) $2,518.1 million GST revenue grants, plus $351.7 million budget balancing assistance; (c) $2,910.2 million GST revenue grants, plus $44.1 million budget balancing assistance; and (d) $3,157.9 million GST revenue grants. (2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
The Commonwealth underestimated GST collections in the last two financial years, but overestimated in 2001-02. Its estimates oscillated wildly in the first year of operation. This makes it very difficult for the State to plan its finances for the years ahead. As soon as Western Australia managed to secure a better deal from the Commonwealth Grants Commission in terms of the distribution of Commonwealth grants, we have given back to the community in terms of tax relief. In answer to the Member's specific question: (1) (a) $2,374.6 million GST revenue grants, plus $213.0 million budget balancing assistance; (b) $2,518.1 million GST revenue grants, plus $351.7 million budget balancing assistance; (c) $2,910.2 million GST revenue grants, plus $44.1 million budget balancing assistance; and (d) $3,157.9 million GST revenue grants. (2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
As soon as Western Australia managed to secure a better deal from the Commonwealth Grants Commission in terms of the distribution of Commonwealth grants, we have given back to the community in terms of tax relief. In answer to the Member's specific question: (1) (a) $2,374.6 million GST revenue grants, plus $213.0 million budget balancing assistance; (b) $2,518.1 million GST revenue grants, plus $351.7 million budget balancing assistance; (c) $2,910.2 million GST revenue grants, plus $44.1 million budget balancing assistance; and (d) $3,157.9 million GST revenue grants. (2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
In answer to the Member's specific question: (1) (a) $2,374.6 million GST revenue grants, plus $213.0 million budget balancing assistance; (b) $2,518.1 million GST revenue grants, plus $351.7 million budget balancing assistance; (c) $2,910.2 million GST revenue grants, plus $44.1 million budget balancing assistance; and (d) $3,157.9 million GST revenue grants. (2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
(1) (a) $2,374.6 million GST revenue grants, plus $213.0 million budget balancing assistance; (b) $2,518.1 million GST revenue grants, plus $351.7 million budget balancing assistance; (c) $2,910.2 million GST revenue grants, plus $44.1 million budget balancing assistance; and (d) $3,157.9 million GST revenue grants. (2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
(b) $2,518.1 million GST revenue grants, plus $351.7 million budget balancing assistance; (c) $2,910.2 million GST revenue grants, plus $44.1 million budget balancing assistance; and (d) $3,157.9 million GST revenue grants. (2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
(c) $2,910.2 million GST revenue grants, plus $44.1 million budget balancing assistance; and (d) $3,157.9 million GST revenue grants. (2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
(d) $3,157.9 million GST revenue grants. (2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
(2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
(b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
(c) 2002-2003; and (d) 2003-2004?
(d) 2003-2004?
(b) 2005-2006?
The GST was introduced by the Commonwealth Government and agreed to by the States because it was seen to be a growth tax, in that it would increase at a faster rate than the revenues they were giving up. The States also expected that it would be a stable funding arrangement. While the GST was introduced in 2000-01, Western Australia received budget balancing assistance to ensure that we were no worse off than under previous arrangements, until 2003-04. Nevertheless, Western Australia still provided a net fiscal subsidy to the nation of over $2 billion per annum. The Government forms its budget based on advice from the Commonwealth on the expected value of GST payments, however, the State Budget is delivered prior to the Commonwealth and this means that we cannot incorporate the Commonwealth Budget estimates in our budget. The Commonwealth underestimated GST collections in the last two financial years, but overestimated in 2001-02. Its estimates oscillated wildly in the first year of operation. This makes it very difficult for the State to plan its finances for the years ahead. As soon as Western Australia managed to secure a better deal from the Commonwealth Grants Commission in terms of the distribution of Commonwealth grants, we have given back to the community in terms of tax relief. In answer to the Member's specific question: (1) (a) $2,374.6 million GST revenue grants, plus $213.0 million budget balancing assistance; (b) $2,518.1 million GST revenue grants, plus $351.7 million budget balancing assistance; (c) $2,910.2 million GST revenue grants, plus $44.1 million budget balancing assistance; and (d) $3,157.9 million GST revenue grants. (2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
While the GST was introduced in 2000-01, Western Australia received budget balancing assistance to ensure that we were no worse off than under previous arrangements, until 2003-04. Nevertheless, Western Australia still provided a net fiscal subsidy to the nation of over $2 billion per annum. The Government forms its budget based on advice from the Commonwealth on the expected value of GST payments, however, the State Budget is delivered prior to the Commonwealth and this means that we cannot incorporate the Commonwealth Budget estimates in our budget. The Commonwealth underestimated GST collections in the last two financial years, but overestimated in 2001-02. Its estimates oscillated wildly in the first year of operation. This makes it very difficult for the State to plan its finances for the years ahead. As soon as Western Australia managed to secure a better deal from the Commonwealth Grants Commission in terms of the distribution of Commonwealth grants, we have given back to the community in terms of tax relief. In answer to the Member's specific question: (1) (a) $2,374.6 million GST revenue grants, plus $213.0 million budget balancing assistance; (b) $2,518.1 million GST revenue grants, plus $351.7 million budget balancing assistance; (c) $2,910.2 million GST revenue grants, plus $44.1 million budget balancing assistance; and (d) $3,157.9 million GST revenue grants. (2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
Nevertheless, Western Australia still provided a net fiscal subsidy to the nation of over $2 billion per annum. The Government forms its budget based on advice from the Commonwealth on the expected value of GST payments, however, the State Budget is delivered prior to the Commonwealth and this means that we cannot incorporate the Commonwealth Budget estimates in our budget. The Commonwealth underestimated GST collections in the last two financial years, but overestimated in 2001-02. Its estimates oscillated wildly in the first year of operation. This makes it very difficult for the State to plan its finances for the years ahead. As soon as Western Australia managed to secure a better deal from the Commonwealth Grants Commission in terms of the distribution of Commonwealth grants, we have given back to the community in terms of tax relief. In answer to the Member's specific question: (1) (a) $2,374.6 million GST revenue grants, plus $213.0 million budget balancing assistance; (b) $2,518.1 million GST revenue grants, plus $351.7 million budget balancing assistance; (c) $2,910.2 million GST revenue grants, plus $44.1 million budget balancing assistance; and (d) $3,157.9 million GST revenue grants. (2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
The Government forms its budget based on advice from the Commonwealth on the expected value of GST payments, however, the State Budget is delivered prior to the Commonwealth and this means that we cannot incorporate the Commonwealth Budget estimates in our budget. The Commonwealth underestimated GST collections in the last two financial years, but overestimated in 2001-02. Its estimates oscillated wildly in the first year of operation. This makes it very difficult for the State to plan its finances for the years ahead. As soon as Western Australia managed to secure a better deal from the Commonwealth Grants Commission in terms of the distribution of Commonwealth grants, we have given back to the community in terms of tax relief. In answer to the Member's specific question: (1) (a) $2,374.6 million GST revenue grants, plus $213.0 million budget balancing assistance; (b) $2,518.1 million GST revenue grants, plus $351.7 million budget balancing assistance; (c) $2,910.2 million GST revenue grants, plus $44.1 million budget balancing assistance; and (d) $3,157.9 million GST revenue grants. (2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
The Commonwealth underestimated GST collections in the last two financial years, but overestimated in 2001-02. Its estimates oscillated wildly in the first year of operation. This makes it very difficult for the State to plan its finances for the years ahead. As soon as Western Australia managed to secure a better deal from the Commonwealth Grants Commission in terms of the distribution of Commonwealth grants, we have given back to the community in terms of tax relief. In answer to the Member's specific question: (1) (a) $2,374.6 million GST revenue grants, plus $213.0 million budget balancing assistance; (b) $2,518.1 million GST revenue grants, plus $351.7 million budget balancing assistance; (c) $2,910.2 million GST revenue grants, plus $44.1 million budget balancing assistance; and (d) $3,157.9 million GST revenue grants. (2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
As soon as Western Australia managed to secure a better deal from the Commonwealth Grants Commission in terms of the distribution of Commonwealth grants, we have given back to the community in terms of tax relief. In answer to the Member's specific question: (1) (a) $2,374.6 million GST revenue grants, plus $213.0 million budget balancing assistance; (b) $2,518.1 million GST revenue grants, plus $351.7 million budget balancing assistance; (c) $2,910.2 million GST revenue grants, plus $44.1 million budget balancing assistance; and (d) $3,157.9 million GST revenue grants. (2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
In answer to the Member's specific question: (1) (a) $2,374.6 million GST revenue grants, plus $213.0 million budget balancing assistance; (b) $2,518.1 million GST revenue grants, plus $351.7 million budget balancing assistance; (c) $2,910.2 million GST revenue grants, plus $44.1 million budget balancing assistance; and (d) $3,157.9 million GST revenue grants. (2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
(1) (a) $2,374.6 million GST revenue grants, plus $213.0 million budget balancing assistance; (b) $2,518.1 million GST revenue grants, plus $351.7 million budget balancing assistance; (c) $2,910.2 million GST revenue grants, plus $44.1 million budget balancing assistance; and (d) $3,157.9 million GST revenue grants. (2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
(b) $2,518.1 million GST revenue grants, plus $351.7 million budget balancing assistance; (c) $2,910.2 million GST revenue grants, plus $44.1 million budget balancing assistance; and (d) $3,157.9 million GST revenue grants. (2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
(c) $2,910.2 million GST revenue grants, plus $44.1 million budget balancing assistance; and (d) $3,157.9 million GST revenue grants. (2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
(d) $3,157.9 million GST revenue grants. (2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
(2) (a) $3,496 million GST revenue grants; and (b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
(b) $3,629 million GST revenue grants. These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
These figures are 2004/05 budget time estimates. Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
AnswerView source ↗
Answered
26 November 2004
Response time
38 days
Total Commonwealth grants account for almost half of Western Australia's total operating revenue (in 2003-04 total Commonwealth grants were 46% of total operating revenue and the State Budget estimated that in 2004-05 they will account for 49%).
The GST was introduced by the Commonwealth Government and agreed to by the States because it was seen to be a growth tax, in that it would increase at a faster rate than the revenues they were giving up. The States also expected that it would be a stable funding arrangement.
While the GST was introduced in 2000-01, Western Australia received budget balancing assistance to ensure that we were no worse off than under previous arrangements, until 2003-04.
Nevertheless, Western Australia still provided a net fiscal subsidy to the nation of over $2 billion per annum.
The Government forms its budget based on advice from the Commonwealth on the expected value of GST payments, however, the State Budget is delivered prior to the Commonwealth and this means that we cannot incorporate the Commonwealth Budget estimates in our budget.
The Commonwealth underestimated GST collections in the last two financial years, but overestimated in 2001-02. Its estimates oscillated wildly in the first year of operation. This makes it very difficult for the State to plan its finances for the years ahead.
As soon as Western Australia managed to secure a better deal from the Commonwealth Grants Commission in terms of the distribution of Commonwealth grants, we have given back to the community in terms of tax relief.
In answer to the Member's specific question:
(1) (a) $2,374.6 million GST revenue grants, plus $213.0 million budget balancing assistance;
(b) $2,518.1 million GST revenue grants, plus $351.7 million budget balancing assistance;
(c) $2,910.2 million GST revenue grants, plus $44.1 million budget balancing assistance; and
(d) $3,157.9 million GST revenue grants.
(2) (a) $3,496 million GST revenue grants; and
(b) $3,629 million GST revenue grants.
These figures are 2004/05 budget time estimates.
Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
The GST was introduced by the Commonwealth Government and agreed to by the States because it was seen to be a growth tax, in that it would increase at a faster rate than the revenues they were giving up. The States also expected that it would be a stable funding arrangement.
While the GST was introduced in 2000-01, Western Australia received budget balancing assistance to ensure that we were no worse off than under previous arrangements, until 2003-04.
Nevertheless, Western Australia still provided a net fiscal subsidy to the nation of over $2 billion per annum.
The Government forms its budget based on advice from the Commonwealth on the expected value of GST payments, however, the State Budget is delivered prior to the Commonwealth and this means that we cannot incorporate the Commonwealth Budget estimates in our budget.
The Commonwealth underestimated GST collections in the last two financial years, but overestimated in 2001-02. Its estimates oscillated wildly in the first year of operation. This makes it very difficult for the State to plan its finances for the years ahead.
As soon as Western Australia managed to secure a better deal from the Commonwealth Grants Commission in terms of the distribution of Commonwealth grants, we have given back to the community in terms of tax relief.
In answer to the Member's specific question:
(1) (a) $2,374.6 million GST revenue grants, plus $213.0 million budget balancing assistance;
(b) $2,518.1 million GST revenue grants, plus $351.7 million budget balancing assistance;
(c) $2,910.2 million GST revenue grants, plus $44.1 million budget balancing assistance; and
(d) $3,157.9 million GST revenue grants.
(2) (a) $3,496 million GST revenue grants; and
(b) $3,629 million GST revenue grants.
These figures are 2004/05 budget time estimates.
Note: Under the Intergovernmental Agreement that accompanied the introduction of the GST, the Commonwealth agreed to 'top-up' GST Revenue Grants with budget balancing assistance payments, on the premise of ensuring that no State's budget was worse off as a result of GST-related tax reforms.
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