The WA parliamentary question concerns discrepancies between the Treasurer's press release focusing on an $89 million GST funding cut and the Commonwealth Grants Commission's announcement stating a $224.5 million increase. The Treasurer clarifies the figures and defends the press release's focus.

AnsweredQoN 56Legislative Council
Asked
21 March 2006
Portfolio
minister representing the Treasurer

QuestionView source ↗

Some notice of this question has been given. I refer the Treasurer to his press release dated 1 March 2006 concerning the Commonwealth Grants Commission announcement on goods and services tax funding for the states for next year. (1) Will the Treasurer confirm that Western Australia will receive $224.5 million more in GST funding for 2006-07, as stated in the Commonwealth Grants Commission announcement? (2) Will the Treasurer explain why his press release made no mention of the $224.5 million GST funding increase whilst only referring to an $89 million funding cut? (3) Will the Treasurer issue a new statement to correct the public misconception that WA is facing a GST funding cut of $89 million next year; and, if not, why not? Hon LJILJANNA RAVLICH

AnswerView source ↗

I thank the member for some notice of this question. (1) Western Australia expects to receive about $132 million more in goods and services tax funding for 2006-07 than for the current year, based on our latest published estimates in the Western Australian Government Mid-year Financial Projections Statement , updated for the Commonwealth Grants Commission’s report. This increase reflects the combined impact of growth in the national pool of GST revenues, growth in our population share and the $89 million cut in Western Australia’s per capita funding share recommended by the grants commission. The figure of $224.5 million was calculated by the Commonwealth Grants Commission, and includes the increase in commonwealth health care grants and GST grants, as well as lower commonwealth estimates of national GST revenues in 2005-06 than estimated in the WA Government Mid-year Financial Projections Statement and some minor differences in parameter assumptions. (2) The Treasurer’s press release commented on the grants commission’s recommendation. The grants commission makes recommendations on the states’ per capita shares of GST revenues. It makes no recommendations about population shares, the pool of GST revenues or commonwealth health care grants, all of which influence our actual GST grants. (3) There is no misconception. Western Australia is facing an $89 million funding cut next year relative to maintenance of our current per capita share of GST grants.
(1) Will the Treasurer confirm that Western Australia will receive $224.5 million more in GST funding for 2006-07, as stated in the Commonwealth Grants Commission announcement? (2) Will the Treasurer explain why his press release made no mention of the $224.5 million GST funding increase whilst only referring to an $89 million funding cut? (3) Will the Treasurer issue a new statement to correct the public misconception that WA is facing a GST funding cut of $89 million next year; and, if not, why not? Hon LJILJANNA RAVLICH replied: I thank the member for some notice of this question. (1) Western Australia expects to receive about $132 million more in goods and services tax funding for 2006-07 than for the current year, based on our latest published estimates in the Western Australian Government Mid-year Financial Projections Statement , updated for the Commonwealth Grants Commission’s report. This increase reflects the combined impact of growth in the national pool of GST revenues, growth in our population share and the $89 million cut in Western Australia’s per capita funding share recommended by the grants commission. The figure of $224.5 million was calculated by the Commonwealth Grants Commission, and includes the increase in commonwealth health care grants and GST grants, as well as lower commonwealth estimates of national GST revenues in 2005-06 than estimated in the WA Government Mid-year Financial Projections Statement and some minor differences in parameter assumptions. (2) The Treasurer’s press release commented on the grants commission’s recommendation. The grants commission makes recommendations on the states’ per capita shares of GST revenues. It makes no recommendations about population shares, the pool of GST revenues or commonwealth health care grants, all of which influence our actual GST grants. (3) There is no misconception. Western Australia is facing an $89 million funding cut next year relative to maintenance of our current per capita share of GST grants.
(2) Will the Treasurer explain why his press release made no mention of the $224.5 million GST funding increase whilst only referring to an $89 million funding cut? (3) Will the Treasurer issue a new statement to correct the public misconception that WA is facing a GST funding cut of $89 million next year; and, if not, why not? Hon LJILJANNA RAVLICH replied: I thank the member for some notice of this question. (1) Western Australia expects to receive about $132 million more in goods and services tax funding for 2006-07 than for the current year, based on our latest published estimates in the Western Australian Government Mid-year Financial Projections Statement , updated for the Commonwealth Grants Commission’s report. This increase reflects the combined impact of growth in the national pool of GST revenues, growth in our population share and the $89 million cut in Western Australia’s per capita funding share recommended by the grants commission. The figure of $224.5 million was calculated by the Commonwealth Grants Commission, and includes the increase in commonwealth health care grants and GST grants, as well as lower commonwealth estimates of national GST revenues in 2005-06 than estimated in the WA Government Mid-year Financial Projections Statement and some minor differences in parameter assumptions. (2) The Treasurer’s press release commented on the grants commission’s recommendation. The grants commission makes recommendations on the states’ per capita shares of GST revenues. It makes no recommendations about population shares, the pool of GST revenues or commonwealth health care grants, all of which influence our actual GST grants. (3) There is no misconception. Western Australia is facing an $89 million funding cut next year relative to maintenance of our current per capita share of GST grants.
(3) Will the Treasurer issue a new statement to correct the public misconception that WA is facing a GST funding cut of $89 million next year; and, if not, why not? Hon LJILJANNA RAVLICH replied: I thank the member for some notice of this question. (1) Western Australia expects to receive about $132 million more in goods and services tax funding for 2006-07 than for the current year, based on our latest published estimates in the Western Australian Government Mid-year Financial Projections Statement , updated for the Commonwealth Grants Commission’s report. This increase reflects the combined impact of growth in the national pool of GST revenues, growth in our population share and the $89 million cut in Western Australia’s per capita funding share recommended by the grants commission. The figure of $224.5 million was calculated by the Commonwealth Grants Commission, and includes the increase in commonwealth health care grants and GST grants, as well as lower commonwealth estimates of national GST revenues in 2005-06 than estimated in the WA Government Mid-year Financial Projections Statement and some minor differences in parameter assumptions. (2) The Treasurer’s press release commented on the grants commission’s recommendation. The grants commission makes recommendations on the states’ per capita shares of GST revenues. It makes no recommendations about population shares, the pool of GST revenues or commonwealth health care grants, all of which influence our actual GST grants. (3) There is no misconception. Western Australia is facing an $89 million funding cut next year relative to maintenance of our current per capita share of GST grants.
Hon LJILJANNA RAVLICH replied: I thank the member for some notice of this question. (1) Western Australia expects to receive about $132 million more in goods and services tax funding for 2006-07 than for the current year, based on our latest published estimates in the Western Australian Government Mid-year Financial Projections Statement , updated for the Commonwealth Grants Commission’s report. This increase reflects the combined impact of growth in the national pool of GST revenues, growth in our population share and the $89 million cut in Western Australia’s per capita funding share recommended by the grants commission. The figure of $224.5 million was calculated by the Commonwealth Grants Commission, and includes the increase in commonwealth health care grants and GST grants, as well as lower commonwealth estimates of national GST revenues in 2005-06 than estimated in the WA Government Mid-year Financial Projections Statement and some minor differences in parameter assumptions. (2) The Treasurer’s press release commented on the grants commission’s recommendation. The grants commission makes recommendations on the states’ per capita shares of GST revenues. It makes no recommendations about population shares, the pool of GST revenues or commonwealth health care grants, all of which influence our actual GST grants. (3) There is no misconception. Western Australia is facing an $89 million funding cut next year relative to maintenance of our current per capita share of GST grants.
I thank the member for some notice of this question. (1) Western Australia expects to receive about $132 million more in goods and services tax funding for 2006-07 than for the current year, based on our latest published estimates in the Western Australian Government Mid-year Financial Projections Statement , updated for the Commonwealth Grants Commission’s report. This increase reflects the combined impact of growth in the national pool of GST revenues, growth in our population share and the $89 million cut in Western Australia’s per capita funding share recommended by the grants commission. The figure of $224.5 million was calculated by the Commonwealth Grants Commission, and includes the increase in commonwealth health care grants and GST grants, as well as lower commonwealth estimates of national GST revenues in 2005-06 than estimated in the WA Government Mid-year Financial Projections Statement and some minor differences in parameter assumptions. (2) The Treasurer’s press release commented on the grants commission’s recommendation. The grants commission makes recommendations on the states’ per capita shares of GST revenues. It makes no recommendations about population shares, the pool of GST revenues or commonwealth health care grants, all of which influence our actual GST grants. (3) There is no misconception. Western Australia is facing an $89 million funding cut next year relative to maintenance of our current per capita share of GST grants.
(1) Western Australia expects to receive about $132 million more in goods and services tax funding for 2006-07 than for the current year, based on our latest published estimates in the Western Australian Government Mid-year Financial Projections Statement , updated for the Commonwealth Grants Commission’s report. This increase reflects the combined impact of growth in the national pool of GST revenues, growth in our population share and the $89 million cut in Western Australia’s per capita funding share recommended by the grants commission. The figure of $224.5 million was calculated by the Commonwealth Grants Commission, and includes the increase in commonwealth health care grants and GST grants, as well as lower commonwealth estimates of national GST revenues in 2005-06 than estimated in the WA Government Mid-year Financial Projections Statement and some minor differences in parameter assumptions. (2) The Treasurer’s press release commented on the grants commission’s recommendation. The grants commission makes recommendations on the states’ per capita shares of GST revenues. It makes no recommendations about population shares, the pool of GST revenues or commonwealth health care grants, all of which influence our actual GST grants. (3) There is no misconception. Western Australia is facing an $89 million funding cut next year relative to maintenance of our current per capita share of GST grants.
(2) The Treasurer’s press release commented on the grants commission’s recommendation. The grants commission makes recommendations on the states’ per capita shares of GST revenues. It makes no recommendations about population shares, the pool of GST revenues or commonwealth health care grants, all of which influence our actual GST grants. (3) There is no misconception. Western Australia is facing an $89 million funding cut next year relative to maintenance of our current per capita share of GST grants.
(3) There is no misconception. Western Australia is facing an $89 million funding cut next year relative to maintenance of our current per capita share of GST grants.

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