Opposition asks about fuel subsidies due to increased fuel prices and royalties. Government declines subsidy, citing impact on services and tax relief, highlighting existing tax relief and lower vehicle charges.

AnsweredQoN 689Legislative Council
Asked
22 September 2005
Portfolio
minister representing the Treasurer

QuestionView source ↗

Given the financial benefit the state government has received in oil royalties and additional goods and services tax income from increased fuel prices - (1) Will the Treasurer consider the introduction of a fuel subsidy, in line with that in Queensland, to assist the people of Western Australia, and in particular the people of rural Western Australia? (2) If no to (1), will the Treasurer inform the house of the measures the government intends to take to alleviate the burden of high fuel prices on the community and on business and industry? Hon LJILJANNA RAVLICH

AnswerView source ↗

I thank the member for some notice of this question. (1) No. Provision of a fuel subsidy similar to that in Queensland would reduce the government’s ability to provide other services and tax relief to the community. Account also needs to be taken of higher charges in Queensland in other areas; for example, annual registration charges for a family vehicle are higher than in Western Australia. According to the Prime Minister, the government will not receive additional GST revenues from rising fuel prices. Ninety per cent of oil royalty increases are ultimately redistributed to other states through reductions in our share of commonwealth grants. (2) The government has provided substantial service increases, including in the key area of health announced today, and delivered significant tax relief over the past 18 months. Further tax relief is being examined in the current state tax review. Western Australian vehicle registration and third party insurance charges, taken together, are the lowest in the nation.
(1) Will the Treasurer consider the introduction of a fuel subsidy, in line with that in Queensland, to assist the people of Western Australia, and in particular the people of rural Western Australia? (2) If no to (1), will the Treasurer inform the house of the measures the government intends to take to alleviate the burden of high fuel prices on the community and on business and industry? Hon LJILJANNA RAVLICH replied: I thank the member for some notice of this question. (1) No. Provision of a fuel subsidy similar to that in Queensland would reduce the government’s ability to provide other services and tax relief to the community. Account also needs to be taken of higher charges in Queensland in other areas; for example, annual registration charges for a family vehicle are higher than in Western Australia. According to the Prime Minister, the government will not receive additional GST revenues from rising fuel prices. Ninety per cent of oil royalty increases are ultimately redistributed to other states through reductions in our share of commonwealth grants. (2) The government has provided substantial service increases, including in the key area of health announced today, and delivered significant tax relief over the past 18 months. Further tax relief is being examined in the current state tax review. Western Australian vehicle registration and third party insurance charges, taken together, are the lowest in the nation.
(2) If no to (1), will the Treasurer inform the house of the measures the government intends to take to alleviate the burden of high fuel prices on the community and on business and industry? Hon LJILJANNA RAVLICH replied: I thank the member for some notice of this question. (1) No. Provision of a fuel subsidy similar to that in Queensland would reduce the government’s ability to provide other services and tax relief to the community. Account also needs to be taken of higher charges in Queensland in other areas; for example, annual registration charges for a family vehicle are higher than in Western Australia. According to the Prime Minister, the government will not receive additional GST revenues from rising fuel prices. Ninety per cent of oil royalty increases are ultimately redistributed to other states through reductions in our share of commonwealth grants. (2) The government has provided substantial service increases, including in the key area of health announced today, and delivered significant tax relief over the past 18 months. Further tax relief is being examined in the current state tax review. Western Australian vehicle registration and third party insurance charges, taken together, are the lowest in the nation.
Hon LJILJANNA RAVLICH replied: I thank the member for some notice of this question. (1) No. Provision of a fuel subsidy similar to that in Queensland would reduce the government’s ability to provide other services and tax relief to the community. Account also needs to be taken of higher charges in Queensland in other areas; for example, annual registration charges for a family vehicle are higher than in Western Australia. According to the Prime Minister, the government will not receive additional GST revenues from rising fuel prices. Ninety per cent of oil royalty increases are ultimately redistributed to other states through reductions in our share of commonwealth grants. (2) The government has provided substantial service increases, including in the key area of health announced today, and delivered significant tax relief over the past 18 months. Further tax relief is being examined in the current state tax review. Western Australian vehicle registration and third party insurance charges, taken together, are the lowest in the nation.
I thank the member for some notice of this question. (1) No. Provision of a fuel subsidy similar to that in Queensland would reduce the government’s ability to provide other services and tax relief to the community. Account also needs to be taken of higher charges in Queensland in other areas; for example, annual registration charges for a family vehicle are higher than in Western Australia. According to the Prime Minister, the government will not receive additional GST revenues from rising fuel prices. Ninety per cent of oil royalty increases are ultimately redistributed to other states through reductions in our share of commonwealth grants. (2) The government has provided substantial service increases, including in the key area of health announced today, and delivered significant tax relief over the past 18 months. Further tax relief is being examined in the current state tax review. Western Australian vehicle registration and third party insurance charges, taken together, are the lowest in the nation.
(1) No. Provision of a fuel subsidy similar to that in Queensland would reduce the government’s ability to provide other services and tax relief to the community. Account also needs to be taken of higher charges in Queensland in other areas; for example, annual registration charges for a family vehicle are higher than in Western Australia. According to the Prime Minister, the government will not receive additional GST revenues from rising fuel prices. Ninety per cent of oil royalty increases are ultimately redistributed to other states through reductions in our share of commonwealth grants. (2) The government has provided substantial service increases, including in the key area of health announced today, and delivered significant tax relief over the past 18 months. Further tax relief is being examined in the current state tax review. Western Australian vehicle registration and third party insurance charges, taken together, are the lowest in the nation.
(2) The government has provided substantial service increases, including in the key area of health announced today, and delivered significant tax relief over the past 18 months. Further tax relief is being examined in the current state tax review. Western Australian vehicle registration and third party insurance charges, taken together, are the lowest in the nation.

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