❓ Mr. McRae questions the implications of Commonwealth tax dominance on WA's essential services. Mr. Ripper accuses the federal Treasurer of bullying and threatening WA's GST revenue, endangering essential services and infrastructure.
AnsweredQoN 88Legislative Assembly
QuestionView source ↗
A recent report from the Australian Bureau of Statistics shows that 81 per cent of all tax revenue in Australia is collected by the commonwealth, and that state taxes have failed to keep pace with inflation over that same period. What implications for the delivery of essential services in Western Australia can be drawn from this report? Mr E.S. RIPPER
AnswerView source ↗
I am sure members are well aware that Western Australia has come under significant pressure from the federal Treasurer to abolish some business taxes. In effect, the federal Treasurer has threatened to withdraw goods and services tax funding from the states unless they buckle to his will and let Canberra determine their tax policy. Peter Costello is attempting a giant distraction. The real issue in this country is commonwealth taxes, in particular, income tax. According to the ABS, the total federal tax grab has increased by nearly 40 per cent during the past five years to over $10 000 for every man, woman and child in this country. By comparison, the same figures show that Western Australia’s taxation revenue per capita was $2 503 in 2003-04. That figure includes local government rates. It also precedes the $1.5 billion of tax cuts that this government has implemented in the past 12 months. The commonwealth’s share of all taxation in Australia over the five years from 1998-99 to 2003-04 increased by three percentage points from 78 per cent to 81 per cent. The current federal government is the highest taxing federal government in Australian history. It is no wonder the federal government is experiencing backbench agitation for income tax reform. Even the federal government’s most loyal supporters, its backbenchers, are embarrassed by the taxation situation. A formerly loyal supporter, former Liberal Premier Richard Court, had this to say on the question of federal and state taxes - What I’m saying is that I cringe when the Federal Government - and both sides of politics federally - say you’ve now got a growth revenue, shut up. What they don’t say is that the major source of taxation, company tax and income tax, is actually growing at a faster rate than GST. That was from the former Liberal Premier and Treasurer, Richard Court. If we accept the commonwealth’s agenda for tax revenue in Western Australia and if we lose the revenue that Peter Costello wants to take from us, it will be our services and our infrastructure under threat. The so-called windfall from the goods and services tax over and above the guaranteed minimum amount is the growth tax benefit that the advocates of the GST said would be one of the advantages if the GST was introduced. It was introduced as a growth tax to provide for those growing demands in health, education and law and order. It was introduced to provide, for example, for the extra $889 million that we now spend each year on health services compared with the year in which we were elected. The need for that growth tax will continue. Have a look at health expenditure, for example. Just on the basis of our existing forward estimates and our election commitments, by 2008-09 we expect to be spending $741 million a year extra on health services than we are spending now. Of course, we need a growth tax and of course we need to do better than the guaranteed minimum amount when there are those sorts of spending pressures on health services. Peter Costello’s threat to the GST puts these essential services and programs at risk. If Peter Costello attacks the budget surplus, he will put essential infrastructure investment at risk, as that investment to support this state’s economy is funded in large part from the budget surplus on day-to-day expenditure. The plain fact is that the federal Treasurer has a very poor understanding of the needs of Western Australia and a very poor understanding of the massive contribution that this state makes to the national economy. That is why he tolerates the situation in which he returns only $9 000 of the $10 000 that he takes away from every Western Australian; he keeps $1 000 and does not give it back to Western Australia. Despite the threats and the bullying of the federal Treasurer, the Western Australian government will decide which state taxes are cut and the circumstances in which they are cut. If Mr Costello attacks our GST revenue, it will be our services and our infrastructure that will suffer. We will make it absolutely plain to every member of our community, whenever a service or an infrastructure project is under threat, that the responsibility lies squarely at the feet of the Howard government, and Mr Peter Costello, in particular.
Mr E.S. RIPPER replied: I am sure members are well aware that Western Australia has come under significant pressure from the federal Treasurer to abolish some business taxes. In effect, the federal Treasurer has threatened to withdraw goods and services tax funding from the states unless they buckle to his will and let Canberra determine their tax policy. Peter Costello is attempting a giant distraction. The real issue in this country is commonwealth taxes, in particular, income tax. According to the ABS, the total federal tax grab has increased by nearly 40 per cent during the past five years to over $10 000 for every man, woman and child in this country. By comparison, the same figures show that Western Australia’s taxation revenue per capita was $2 503 in 2003-04. That figure includes local government rates. It also precedes the $1.5 billion of tax cuts that this government has implemented in the past 12 months. The commonwealth’s share of all taxation in Australia over the five years from 1998-99 to 2003-04 increased by three percentage points from 78 per cent to 81 per cent. The current federal government is the highest taxing federal government in Australian history. It is no wonder the federal government is experiencing backbench agitation for income tax reform. Even the federal government’s most loyal supporters, its backbenchers, are embarrassed by the taxation situation. A formerly loyal supporter, former Liberal Premier Richard Court, had this to say on the question of federal and state taxes - What I’m saying is that I cringe when the Federal Government - and both sides of politics federally - say you’ve now got a growth revenue, shut up. What they don’t say is that the major source of taxation, company tax and income tax, is actually growing at a faster rate than GST. That was from the former Liberal Premier and Treasurer, Richard Court. If we accept the commonwealth’s agenda for tax revenue in Western Australia and if we lose the revenue that Peter Costello wants to take from us, it will be our services and our infrastructure under threat. The so-called windfall from the goods and services tax over and above the guaranteed minimum amount is the growth tax benefit that the advocates of the GST said would be one of the advantages if the GST was introduced. It was introduced as a growth tax to provide for those growing demands in health, education and law and order. It was introduced to provide, for example, for the extra $889 million that we now spend each year on health services compared with the year in which we were elected. The need for that growth tax will continue. Have a look at health expenditure, for example. Just on the basis of our existing forward estimates and our election commitments, by 2008-09 we expect to be spending $741 million a year extra on health services than we are spending now. Of course, we need a growth tax and of course we need to do better than the guaranteed minimum amount when there are those sorts of spending pressures on health services. Peter Costello’s threat to the GST puts these essential services and programs at risk. If Peter Costello attacks the budget surplus, he will put essential infrastructure investment at risk, as that investment to support this state’s economy is funded in large part from the budget surplus on day-to-day expenditure. The plain fact is that the federal Treasurer has a very poor understanding of the needs of Western Australia and a very poor understanding of the massive contribution that this state makes to the national economy. That is why he tolerates the situation in which he returns only $9 000 of the $10 000 that he takes away from every Western Australian; he keeps $1 000 and does not give it back to Western Australia. Despite the threats and the bullying of the federal Treasurer, the Western Australian government will decide which state taxes are cut and the circumstances in which they are cut. If Mr Costello attacks our GST revenue, it will be our services and our infrastructure that will suffer. We will make it absolutely plain to every member of our community, whenever a service or an infrastructure project is under threat, that the responsibility lies squarely at the feet of the Howard government, and Mr Peter Costello, in particular.
I am sure members are well aware that Western Australia has come under significant pressure from the federal Treasurer to abolish some business taxes. In effect, the federal Treasurer has threatened to withdraw goods and services tax funding from the states unless they buckle to his will and let Canberra determine their tax policy. Peter Costello is attempting a giant distraction. The real issue in this country is commonwealth taxes, in particular, income tax. According to the ABS, the total federal tax grab has increased by nearly 40 per cent during the past five years to over $10 000 for every man, woman and child in this country. By comparison, the same figures show that Western Australia’s taxation revenue per capita was $2 503 in 2003-04. That figure includes local government rates. It also precedes the $1.5 billion of tax cuts that this government has implemented in the past 12 months. The commonwealth’s share of all taxation in Australia over the five years from 1998-99 to 2003-04 increased by three percentage points from 78 per cent to 81 per cent. The current federal government is the highest taxing federal government in Australian history. It is no wonder the federal government is experiencing backbench agitation for income tax reform. Even the federal government’s most loyal supporters, its backbenchers, are embarrassed by the taxation situation. A formerly loyal supporter, former Liberal Premier Richard Court, had this to say on the question of federal and state taxes - What I’m saying is that I cringe when the Federal Government - and both sides of politics federally - say you’ve now got a growth revenue, shut up. What they don’t say is that the major source of taxation, company tax and income tax, is actually growing at a faster rate than GST. That was from the former Liberal Premier and Treasurer, Richard Court. If we accept the commonwealth’s agenda for tax revenue in Western Australia and if we lose the revenue that Peter Costello wants to take from us, it will be our services and our infrastructure under threat. The so-called windfall from the goods and services tax over and above the guaranteed minimum amount is the growth tax benefit that the advocates of the GST said would be one of the advantages if the GST was introduced. It was introduced as a growth tax to provide for those growing demands in health, education and law and order. It was introduced to provide, for example, for the extra $889 million that we now spend each year on health services compared with the year in which we were elected. The need for that growth tax will continue. Have a look at health expenditure, for example. Just on the basis of our existing forward estimates and our election commitments, by 2008-09 we expect to be spending $741 million a year extra on health services than we are spending now. Of course, we need a growth tax and of course we need to do better than the guaranteed minimum amount when there are those sorts of spending pressures on health services. Peter Costello’s threat to the GST puts these essential services and programs at risk. If Peter Costello attacks the budget surplus, he will put essential infrastructure investment at risk, as that investment to support this state’s economy is funded in large part from the budget surplus on day-to-day expenditure. The plain fact is that the federal Treasurer has a very poor understanding of the needs of Western Australia and a very poor understanding of the massive contribution that this state makes to the national economy. That is why he tolerates the situation in which he returns only $9 000 of the $10 000 that he takes away from every Western Australian; he keeps $1 000 and does not give it back to Western Australia. Despite the threats and the bullying of the federal Treasurer, the Western Australian government will decide which state taxes are cut and the circumstances in which they are cut. If Mr Costello attacks our GST revenue, it will be our services and our infrastructure that will suffer. We will make it absolutely plain to every member of our community, whenever a service or an infrastructure project is under threat, that the responsibility lies squarely at the feet of the Howard government, and Mr Peter Costello, in particular.
The plain fact is that the federal Treasurer has a very poor understanding of the needs of Western Australia and a very poor understanding of the massive contribution that this state makes to the national economy. That is why he tolerates the situation in which he returns only $9 000 of the $10 000 that he takes away from every Western Australian; he keeps $1 000 and does not give it back to Western Australia. Despite the threats and the bullying of the federal Treasurer, the Western Australian government will decide which state taxes are cut and the circumstances in which they are cut. If Mr Costello attacks our GST revenue, it will be our services and our infrastructure that will suffer. We will make it absolutely plain to every member of our community, whenever a service or an infrastructure project is under threat, that the responsibility lies squarely at the feet of the Howard government, and Mr Peter Costello, in particular.
Mr E.S. RIPPER replied: I am sure members are well aware that Western Australia has come under significant pressure from the federal Treasurer to abolish some business taxes. In effect, the federal Treasurer has threatened to withdraw goods and services tax funding from the states unless they buckle to his will and let Canberra determine their tax policy. Peter Costello is attempting a giant distraction. The real issue in this country is commonwealth taxes, in particular, income tax. According to the ABS, the total federal tax grab has increased by nearly 40 per cent during the past five years to over $10 000 for every man, woman and child in this country. By comparison, the same figures show that Western Australia’s taxation revenue per capita was $2 503 in 2003-04. That figure includes local government rates. It also precedes the $1.5 billion of tax cuts that this government has implemented in the past 12 months. The commonwealth’s share of all taxation in Australia over the five years from 1998-99 to 2003-04 increased by three percentage points from 78 per cent to 81 per cent. The current federal government is the highest taxing federal government in Australian history. It is no wonder the federal government is experiencing backbench agitation for income tax reform. Even the federal government’s most loyal supporters, its backbenchers, are embarrassed by the taxation situation. A formerly loyal supporter, former Liberal Premier Richard Court, had this to say on the question of federal and state taxes - What I’m saying is that I cringe when the Federal Government - and both sides of politics federally - say you’ve now got a growth revenue, shut up. What they don’t say is that the major source of taxation, company tax and income tax, is actually growing at a faster rate than GST. That was from the former Liberal Premier and Treasurer, Richard Court. If we accept the commonwealth’s agenda for tax revenue in Western Australia and if we lose the revenue that Peter Costello wants to take from us, it will be our services and our infrastructure under threat. The so-called windfall from the goods and services tax over and above the guaranteed minimum amount is the growth tax benefit that the advocates of the GST said would be one of the advantages if the GST was introduced. It was introduced as a growth tax to provide for those growing demands in health, education and law and order. It was introduced to provide, for example, for the extra $889 million that we now spend each year on health services compared with the year in which we were elected. The need for that growth tax will continue. Have a look at health expenditure, for example. Just on the basis of our existing forward estimates and our election commitments, by 2008-09 we expect to be spending $741 million a year extra on health services than we are spending now. Of course, we need a growth tax and of course we need to do better than the guaranteed minimum amount when there are those sorts of spending pressures on health services. Peter Costello’s threat to the GST puts these essential services and programs at risk. If Peter Costello attacks the budget surplus, he will put essential infrastructure investment at risk, as that investment to support this state’s economy is funded in large part from the budget surplus on day-to-day expenditure. The plain fact is that the federal Treasurer has a very poor understanding of the needs of Western Australia and a very poor understanding of the massive contribution that this state makes to the national economy. That is why he tolerates the situation in which he returns only $9 000 of the $10 000 that he takes away from every Western Australian; he keeps $1 000 and does not give it back to Western Australia. Despite the threats and the bullying of the federal Treasurer, the Western Australian government will decide which state taxes are cut and the circumstances in which they are cut. If Mr Costello attacks our GST revenue, it will be our services and our infrastructure that will suffer. We will make it absolutely plain to every member of our community, whenever a service or an infrastructure project is under threat, that the responsibility lies squarely at the feet of the Howard government, and Mr Peter Costello, in particular.
I am sure members are well aware that Western Australia has come under significant pressure from the federal Treasurer to abolish some business taxes. In effect, the federal Treasurer has threatened to withdraw goods and services tax funding from the states unless they buckle to his will and let Canberra determine their tax policy. Peter Costello is attempting a giant distraction. The real issue in this country is commonwealth taxes, in particular, income tax. According to the ABS, the total federal tax grab has increased by nearly 40 per cent during the past five years to over $10 000 for every man, woman and child in this country. By comparison, the same figures show that Western Australia’s taxation revenue per capita was $2 503 in 2003-04. That figure includes local government rates. It also precedes the $1.5 billion of tax cuts that this government has implemented in the past 12 months. The commonwealth’s share of all taxation in Australia over the five years from 1998-99 to 2003-04 increased by three percentage points from 78 per cent to 81 per cent. The current federal government is the highest taxing federal government in Australian history. It is no wonder the federal government is experiencing backbench agitation for income tax reform. Even the federal government’s most loyal supporters, its backbenchers, are embarrassed by the taxation situation. A formerly loyal supporter, former Liberal Premier Richard Court, had this to say on the question of federal and state taxes - What I’m saying is that I cringe when the Federal Government - and both sides of politics federally - say you’ve now got a growth revenue, shut up. What they don’t say is that the major source of taxation, company tax and income tax, is actually growing at a faster rate than GST. That was from the former Liberal Premier and Treasurer, Richard Court. If we accept the commonwealth’s agenda for tax revenue in Western Australia and if we lose the revenue that Peter Costello wants to take from us, it will be our services and our infrastructure under threat. The so-called windfall from the goods and services tax over and above the guaranteed minimum amount is the growth tax benefit that the advocates of the GST said would be one of the advantages if the GST was introduced. It was introduced as a growth tax to provide for those growing demands in health, education and law and order. It was introduced to provide, for example, for the extra $889 million that we now spend each year on health services compared with the year in which we were elected. The need for that growth tax will continue. Have a look at health expenditure, for example. Just on the basis of our existing forward estimates and our election commitments, by 2008-09 we expect to be spending $741 million a year extra on health services than we are spending now. Of course, we need a growth tax and of course we need to do better than the guaranteed minimum amount when there are those sorts of spending pressures on health services. Peter Costello’s threat to the GST puts these essential services and programs at risk. If Peter Costello attacks the budget surplus, he will put essential infrastructure investment at risk, as that investment to support this state’s economy is funded in large part from the budget surplus on day-to-day expenditure. The plain fact is that the federal Treasurer has a very poor understanding of the needs of Western Australia and a very poor understanding of the massive contribution that this state makes to the national economy. That is why he tolerates the situation in which he returns only $9 000 of the $10 000 that he takes away from every Western Australian; he keeps $1 000 and does not give it back to Western Australia. Despite the threats and the bullying of the federal Treasurer, the Western Australian government will decide which state taxes are cut and the circumstances in which they are cut. If Mr Costello attacks our GST revenue, it will be our services and our infrastructure that will suffer. We will make it absolutely plain to every member of our community, whenever a service or an infrastructure project is under threat, that the responsibility lies squarely at the feet of the Howard government, and Mr Peter Costello, in particular.
The plain fact is that the federal Treasurer has a very poor understanding of the needs of Western Australia and a very poor understanding of the massive contribution that this state makes to the national economy. That is why he tolerates the situation in which he returns only $9 000 of the $10 000 that he takes away from every Western Australian; he keeps $1 000 and does not give it back to Western Australia. Despite the threats and the bullying of the federal Treasurer, the Western Australian government will decide which state taxes are cut and the circumstances in which they are cut. If Mr Costello attacks our GST revenue, it will be our services and our infrastructure that will suffer. We will make it absolutely plain to every member of our community, whenever a service or an infrastructure project is under threat, that the responsibility lies squarely at the feet of the Howard government, and Mr Peter Costello, in particular.
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