❓ Dr. Hames questions the Treasurer about using a budget surplus to fund a new children's hospital, given tax increases and concerns about affordability. The Treasurer avoids a direct commitment, citing lower taxes compared to other states and forecasting challenges.
AnsweredQoN 307Legislative Assembly
QuestionView source ↗
BUDGET SURPLUS - NEW CHILDREN’S HOSPITAL
I refer to the latest Treasury figures that show that with just two months left in the financial year and just six weeks after the budget was delivered, the government has already exceeded the forecast surplus by $240 million. (1) What is the estimated cost of the new children’s hospital? (2) Will the Treasurer commit the additional surplus, with the $207 million that is already provided for in the budget, to fund the construction of a new children’s hospital? (3) Given that the record surplus has been built on the back of unprecedented tax hikes, does the Treasurer still support the comments from members on his own frontbench that Western Australia cannot afford to build a new stadium and a new children’s hospital? Mr E.S. RIPPER
I refer to the latest Treasury figures that show that with just two months left in the financial year and just six weeks after the budget was delivered, the government has already exceeded the forecast surplus by $240 million. (1) What is the estimated cost of the new children’s hospital? (2) Will the Treasurer commit the additional surplus, with the $207 million that is already provided for in the budget, to fund the construction of a new children’s hospital? (3) Given that the record surplus has been built on the back of unprecedented tax hikes, does the Treasurer still support the comments from members on his own frontbench that Western Australia cannot afford to build a new stadium and a new children’s hospital? Mr E.S. RIPPER
AnswerView source ↗
(1)-(3) Our taxes are lower than those of the other states as a share of our economy. Across the forward estimates, taxes as a share of our economy will be either the lowest or second lowest of the states. I reject the premise of the member’s question relating to tax. I have some interesting figures on budget forecasting errors. I have an interstate comparison of a review of revenue forecasting that was conducted by the Department of Treasury and Finance at the instigation of the government. On taxation revenue between 2001 and 2004-05, the forecasting error was 10.1 per cent in Western Australia, 6.7 per cent in New South Wales, 6.8 per cent in Victoria, 10.4 per cent in Queensland, 9.9 per cent in South Australia and 13.2 per cent in Tasmania. On conveyance duty, the forecasting error was 32.4 per cent in Western Australia, 28.3 per cent in New South Wales, 31.4 per cent in Victoria, 36.3 per cent in Queensland, 57.1 per cent in South Australia and 60.7 per cent in Tasmania. As the federal Minister for Finance and Administration Senator Nick Minchin pointed out when responding to the same issue at a federal level, International Monetary Fund research has indicated that underestimating forecasts is a worldwide problem. The issue regarding the surplus outcome for this financial year is that the revenue estimates are tracking with the latest revenue estimates presented to this house when I delivered the budget on 10 May. Mr T. Buswell : No, they are not. Mr E.S. RIPPER : If the member calls 83.4 per cent of revenue for the year over 83 per cent of the year not tracking, he has a different way of viewing the circumstances than I do. When I produced the budget on 10 May and forecast the outcome for this financial year, I obviously gave revenue estimates that are tracking with the April end-of-year results. We might - I repeat, might - get a bigger than expected surplus if government agencies underspend because they are unable to recruit staff. That is not an ongoing position; they still can have the capacity to carryover that expenditure into further years. Therefore, it is not necessarily expenditure that would be available for new capital works, because it is committed. However, if we get a bigger surplus as a result of stronger and longer economic growth, that will give the state additional financial capacity. A range of exciting projects are awaiting government consideration that must be juggled within the financial parameters. The government and the community must make choices, even though we have more financial capacity than we did when we were elected and when the economy was getting smaller and there had been five budget deficits out of eight. We still must make choices. The government will carefully think about how this financial capacity that we have should be used to the best advantage of the community.
(1) What is the estimated cost of the new children’s hospital? (2) Will the Treasurer commit the additional surplus, with the $207 million that is already provided for in the budget, to fund the construction of a new children’s hospital? (3) Given that the record surplus has been built on the back of unprecedented tax hikes, does the Treasurer still support the comments from members on his own frontbench that Western Australia cannot afford to build a new stadium and a new children’s hospital? Mr E.S. RIPPER replied: (1)-(3) Our taxes are lower than those of the other states as a share of our economy. Across the forward estimates, taxes as a share of our economy will be either the lowest or second lowest of the states. I reject the premise of the member’s question relating to tax. I have some interesting figures on budget forecasting errors. I have an interstate comparison of a review of revenue forecasting that was conducted by the Department of Treasury and Finance at the instigation of the government. On taxation revenue between 2001 and 2004-05, the forecasting error was 10.1 per cent in Western Australia, 6.7 per cent in New South Wales, 6.8 per cent in Victoria, 10.4 per cent in Queensland, 9.9 per cent in South Australia and 13.2 per cent in Tasmania. On conveyance duty, the forecasting error was 32.4 per cent in Western Australia, 28.3 per cent in New South Wales, 31.4 per cent in Victoria, 36.3 per cent in Queensland, 57.1 per cent in South Australia and 60.7 per cent in Tasmania. As the federal Minister for Finance and Administration Senator Nick Minchin pointed out when responding to the same issue at a federal level, International Monetary Fund research has indicated that underestimating forecasts is a worldwide problem. The issue regarding the surplus outcome for this financial year is that the revenue estimates are tracking with the latest revenue estimates presented to this house when I delivered the budget on 10 May. Mr T. Buswell : No, they are not. Mr E.S. RIPPER : If the member calls 83.4 per cent of revenue for the year over 83 per cent of the year not tracking, he has a different way of viewing the circumstances than I do. When I produced the budget on 10 May and forecast the outcome for this financial year, I obviously gave revenue estimates that are tracking with the April end-of-year results. We might - I repeat, might - get a bigger than expected surplus if government agencies underspend because they are unable to recruit staff. That is not an ongoing position; they still can have the capacity to carryover that expenditure into further years. Therefore, it is not necessarily expenditure that would be available for new capital works, because it is committed. However, if we get a bigger surplus as a result of stronger and longer economic growth, that will give the state additional financial capacity. A range of exciting projects are awaiting government consideration that must be juggled within the financial parameters. The government and the community must make choices, even though we have more financial capacity than we did when we were elected and when the economy was getting smaller and there had been five budget deficits out of eight. We still must make choices. The government will carefully think about how this financial capacity that we have should be used to the best advantage of the community.
(2) Will the Treasurer commit the additional surplus, with the $207 million that is already provided for in the budget, to fund the construction of a new children’s hospital? (3) Given that the record surplus has been built on the back of unprecedented tax hikes, does the Treasurer still support the comments from members on his own frontbench that Western Australia cannot afford to build a new stadium and a new children’s hospital? Mr E.S. RIPPER replied: (1)-(3) Our taxes are lower than those of the other states as a share of our economy. Across the forward estimates, taxes as a share of our economy will be either the lowest or second lowest of the states. I reject the premise of the member’s question relating to tax. I have some interesting figures on budget forecasting errors. I have an interstate comparison of a review of revenue forecasting that was conducted by the Department of Treasury and Finance at the instigation of the government. On taxation revenue between 2001 and 2004-05, the forecasting error was 10.1 per cent in Western Australia, 6.7 per cent in New South Wales, 6.8 per cent in Victoria, 10.4 per cent in Queensland, 9.9 per cent in South Australia and 13.2 per cent in Tasmania. On conveyance duty, the forecasting error was 32.4 per cent in Western Australia, 28.3 per cent in New South Wales, 31.4 per cent in Victoria, 36.3 per cent in Queensland, 57.1 per cent in South Australia and 60.7 per cent in Tasmania. As the federal Minister for Finance and Administration Senator Nick Minchin pointed out when responding to the same issue at a federal level, International Monetary Fund research has indicated that underestimating forecasts is a worldwide problem. The issue regarding the surplus outcome for this financial year is that the revenue estimates are tracking with the latest revenue estimates presented to this house when I delivered the budget on 10 May. Mr T. Buswell : No, they are not. Mr E.S. RIPPER : If the member calls 83.4 per cent of revenue for the year over 83 per cent of the year not tracking, he has a different way of viewing the circumstances than I do. When I produced the budget on 10 May and forecast the outcome for this financial year, I obviously gave revenue estimates that are tracking with the April end-of-year results. We might - I repeat, might - get a bigger than expected surplus if government agencies underspend because they are unable to recruit staff. That is not an ongoing position; they still can have the capacity to carryover that expenditure into further years. Therefore, it is not necessarily expenditure that would be available for new capital works, because it is committed. However, if we get a bigger surplus as a result of stronger and longer economic growth, that will give the state additional financial capacity. A range of exciting projects are awaiting government consideration that must be juggled within the financial parameters. The government and the community must make choices, even though we have more financial capacity than we did when we were elected and when the economy was getting smaller and there had been five budget deficits out of eight. We still must make choices. The government will carefully think about how this financial capacity that we have should be used to the best advantage of the community.
(3) Given that the record surplus has been built on the back of unprecedented tax hikes, does the Treasurer still support the comments from members on his own frontbench that Western Australia cannot afford to build a new stadium and a new children’s hospital? Mr E.S. RIPPER replied: (1)-(3) Our taxes are lower than those of the other states as a share of our economy. Across the forward estimates, taxes as a share of our economy will be either the lowest or second lowest of the states. I reject the premise of the member’s question relating to tax. I have some interesting figures on budget forecasting errors. I have an interstate comparison of a review of revenue forecasting that was conducted by the Department of Treasury and Finance at the instigation of the government. On taxation revenue between 2001 and 2004-05, the forecasting error was 10.1 per cent in Western Australia, 6.7 per cent in New South Wales, 6.8 per cent in Victoria, 10.4 per cent in Queensland, 9.9 per cent in South Australia and 13.2 per cent in Tasmania. On conveyance duty, the forecasting error was 32.4 per cent in Western Australia, 28.3 per cent in New South Wales, 31.4 per cent in Victoria, 36.3 per cent in Queensland, 57.1 per cent in South Australia and 60.7 per cent in Tasmania. As the federal Minister for Finance and Administration Senator Nick Minchin pointed out when responding to the same issue at a federal level, International Monetary Fund research has indicated that underestimating forecasts is a worldwide problem. The issue regarding the surplus outcome for this financial year is that the revenue estimates are tracking with the latest revenue estimates presented to this house when I delivered the budget on 10 May. Mr T. Buswell : No, they are not. Mr E.S. RIPPER : If the member calls 83.4 per cent of revenue for the year over 83 per cent of the year not tracking, he has a different way of viewing the circumstances than I do. When I produced the budget on 10 May and forecast the outcome for this financial year, I obviously gave revenue estimates that are tracking with the April end-of-year results. We might - I repeat, might - get a bigger than expected surplus if government agencies underspend because they are unable to recruit staff. That is not an ongoing position; they still can have the capacity to carryover that expenditure into further years. Therefore, it is not necessarily expenditure that would be available for new capital works, because it is committed. However, if we get a bigger surplus as a result of stronger and longer economic growth, that will give the state additional financial capacity. A range of exciting projects are awaiting government consideration that must be juggled within the financial parameters. The government and the community must make choices, even though we have more financial capacity than we did when we were elected and when the economy was getting smaller and there had been five budget deficits out of eight. We still must make choices. The government will carefully think about how this financial capacity that we have should be used to the best advantage of the community.
Mr E.S. RIPPER replied: (1)-(3) Our taxes are lower than those of the other states as a share of our economy. Across the forward estimates, taxes as a share of our economy will be either the lowest or second lowest of the states. I reject the premise of the member’s question relating to tax. I have some interesting figures on budget forecasting errors. I have an interstate comparison of a review of revenue forecasting that was conducted by the Department of Treasury and Finance at the instigation of the government. On taxation revenue between 2001 and 2004-05, the forecasting error was 10.1 per cent in Western Australia, 6.7 per cent in New South Wales, 6.8 per cent in Victoria, 10.4 per cent in Queensland, 9.9 per cent in South Australia and 13.2 per cent in Tasmania. On conveyance duty, the forecasting error was 32.4 per cent in Western Australia, 28.3 per cent in New South Wales, 31.4 per cent in Victoria, 36.3 per cent in Queensland, 57.1 per cent in South Australia and 60.7 per cent in Tasmania. As the federal Minister for Finance and Administration Senator Nick Minchin pointed out when responding to the same issue at a federal level, International Monetary Fund research has indicated that underestimating forecasts is a worldwide problem. The issue regarding the surplus outcome for this financial year is that the revenue estimates are tracking with the latest revenue estimates presented to this house when I delivered the budget on 10 May. Mr T. Buswell : No, they are not. Mr E.S. RIPPER : If the member calls 83.4 per cent of revenue for the year over 83 per cent of the year not tracking, he has a different way of viewing the circumstances than I do. When I produced the budget on 10 May and forecast the outcome for this financial year, I obviously gave revenue estimates that are tracking with the April end-of-year results. We might - I repeat, might - get a bigger than expected surplus if government agencies underspend because they are unable to recruit staff. That is not an ongoing position; they still can have the capacity to carryover that expenditure into further years. Therefore, it is not necessarily expenditure that would be available for new capital works, because it is committed. However, if we get a bigger surplus as a result of stronger and longer economic growth, that will give the state additional financial capacity. A range of exciting projects are awaiting government consideration that must be juggled within the financial parameters. The government and the community must make choices, even though we have more financial capacity than we did when we were elected and when the economy was getting smaller and there had been five budget deficits out of eight. We still must make choices. The government will carefully think about how this financial capacity that we have should be used to the best advantage of the community.
(1)-(3) Our taxes are lower than those of the other states as a share of our economy. Across the forward estimates, taxes as a share of our economy will be either the lowest or second lowest of the states. I reject the premise of the member’s question relating to tax. I have some interesting figures on budget forecasting errors. I have an interstate comparison of a review of revenue forecasting that was conducted by the Department of Treasury and Finance at the instigation of the government. On taxation revenue between 2001 and 2004-05, the forecasting error was 10.1 per cent in Western Australia, 6.7 per cent in New South Wales, 6.8 per cent in Victoria, 10.4 per cent in Queensland, 9.9 per cent in South Australia and 13.2 per cent in Tasmania. On conveyance duty, the forecasting error was 32.4 per cent in Western Australia, 28.3 per cent in New South Wales, 31.4 per cent in Victoria, 36.3 per cent in Queensland, 57.1 per cent in South Australia and 60.7 per cent in Tasmania. As the federal Minister for Finance and Administration Senator Nick Minchin pointed out when responding to the same issue at a federal level, International Monetary Fund research has indicated that underestimating forecasts is a worldwide problem. The issue regarding the surplus outcome for this financial year is that the revenue estimates are tracking with the latest revenue estimates presented to this house when I delivered the budget on 10 May. Mr T. Buswell : No, they are not. Mr E.S. RIPPER : If the member calls 83.4 per cent of revenue for the year over 83 per cent of the year not tracking, he has a different way of viewing the circumstances than I do. When I produced the budget on 10 May and forecast the outcome for this financial year, I obviously gave revenue estimates that are tracking with the April end-of-year results. We might - I repeat, might - get a bigger than expected surplus if government agencies underspend because they are unable to recruit staff. That is not an ongoing position; they still can have the capacity to carryover that expenditure into further years. Therefore, it is not necessarily expenditure that would be available for new capital works, because it is committed. However, if we get a bigger surplus as a result of stronger and longer economic growth, that will give the state additional financial capacity. A range of exciting projects are awaiting government consideration that must be juggled within the financial parameters. The government and the community must make choices, even though we have more financial capacity than we did when we were elected and when the economy was getting smaller and there had been five budget deficits out of eight. We still must make choices. The government will carefully think about how this financial capacity that we have should be used to the best advantage of the community.
Mr T. Buswell : No, they are not. Mr E.S. RIPPER : If the member calls 83.4 per cent of revenue for the year over 83 per cent of the year not tracking, he has a different way of viewing the circumstances than I do. When I produced the budget on 10 May and forecast the outcome for this financial year, I obviously gave revenue estimates that are tracking with the April end-of-year results. We might - I repeat, might - get a bigger than expected surplus if government agencies underspend because they are unable to recruit staff. That is not an ongoing position; they still can have the capacity to carryover that expenditure into further years. Therefore, it is not necessarily expenditure that would be available for new capital works, because it is committed. However, if we get a bigger surplus as a result of stronger and longer economic growth, that will give the state additional financial capacity. A range of exciting projects are awaiting government consideration that must be juggled within the financial parameters. The government and the community must make choices, even though we have more financial capacity than we did when we were elected and when the economy was getting smaller and there had been five budget deficits out of eight. We still must make choices. The government will carefully think about how this financial capacity that we have should be used to the best advantage of the community.
Mr E.S. RIPPER : If the member calls 83.4 per cent of revenue for the year over 83 per cent of the year not tracking, he has a different way of viewing the circumstances than I do. When I produced the budget on 10 May and forecast the outcome for this financial year, I obviously gave revenue estimates that are tracking with the April end-of-year results. We might - I repeat, might - get a bigger than expected surplus if government agencies underspend because they are unable to recruit staff. That is not an ongoing position; they still can have the capacity to carryover that expenditure into further years. Therefore, it is not necessarily expenditure that would be available for new capital works, because it is committed. However, if we get a bigger surplus as a result of stronger and longer economic growth, that will give the state additional financial capacity. A range of exciting projects are awaiting government consideration that must be juggled within the financial parameters. The government and the community must make choices, even though we have more financial capacity than we did when we were elected and when the economy was getting smaller and there had been five budget deficits out of eight. We still must make choices. The government will carefully think about how this financial capacity that we have should be used to the best advantage of the community.
(1) What is the estimated cost of the new children’s hospital? (2) Will the Treasurer commit the additional surplus, with the $207 million that is already provided for in the budget, to fund the construction of a new children’s hospital? (3) Given that the record surplus has been built on the back of unprecedented tax hikes, does the Treasurer still support the comments from members on his own frontbench that Western Australia cannot afford to build a new stadium and a new children’s hospital? Mr E.S. RIPPER replied: (1)-(3) Our taxes are lower than those of the other states as a share of our economy. Across the forward estimates, taxes as a share of our economy will be either the lowest or second lowest of the states. I reject the premise of the member’s question relating to tax. I have some interesting figures on budget forecasting errors. I have an interstate comparison of a review of revenue forecasting that was conducted by the Department of Treasury and Finance at the instigation of the government. On taxation revenue between 2001 and 2004-05, the forecasting error was 10.1 per cent in Western Australia, 6.7 per cent in New South Wales, 6.8 per cent in Victoria, 10.4 per cent in Queensland, 9.9 per cent in South Australia and 13.2 per cent in Tasmania. On conveyance duty, the forecasting error was 32.4 per cent in Western Australia, 28.3 per cent in New South Wales, 31.4 per cent in Victoria, 36.3 per cent in Queensland, 57.1 per cent in South Australia and 60.7 per cent in Tasmania. As the federal Minister for Finance and Administration Senator Nick Minchin pointed out when responding to the same issue at a federal level, International Monetary Fund research has indicated that underestimating forecasts is a worldwide problem. The issue regarding the surplus outcome for this financial year is that the revenue estimates are tracking with the latest revenue estimates presented to this house when I delivered the budget on 10 May. Mr T. Buswell : No, they are not. Mr E.S. RIPPER : If the member calls 83.4 per cent of revenue for the year over 83 per cent of the year not tracking, he has a different way of viewing the circumstances than I do. When I produced the budget on 10 May and forecast the outcome for this financial year, I obviously gave revenue estimates that are tracking with the April end-of-year results. We might - I repeat, might - get a bigger than expected surplus if government agencies underspend because they are unable to recruit staff. That is not an ongoing position; they still can have the capacity to carryover that expenditure into further years. Therefore, it is not necessarily expenditure that would be available for new capital works, because it is committed. However, if we get a bigger surplus as a result of stronger and longer economic growth, that will give the state additional financial capacity. A range of exciting projects are awaiting government consideration that must be juggled within the financial parameters. The government and the community must make choices, even though we have more financial capacity than we did when we were elected and when the economy was getting smaller and there had been five budget deficits out of eight. We still must make choices. The government will carefully think about how this financial capacity that we have should be used to the best advantage of the community.
(2) Will the Treasurer commit the additional surplus, with the $207 million that is already provided for in the budget, to fund the construction of a new children’s hospital? (3) Given that the record surplus has been built on the back of unprecedented tax hikes, does the Treasurer still support the comments from members on his own frontbench that Western Australia cannot afford to build a new stadium and a new children’s hospital? Mr E.S. RIPPER replied: (1)-(3) Our taxes are lower than those of the other states as a share of our economy. Across the forward estimates, taxes as a share of our economy will be either the lowest or second lowest of the states. I reject the premise of the member’s question relating to tax. I have some interesting figures on budget forecasting errors. I have an interstate comparison of a review of revenue forecasting that was conducted by the Department of Treasury and Finance at the instigation of the government. On taxation revenue between 2001 and 2004-05, the forecasting error was 10.1 per cent in Western Australia, 6.7 per cent in New South Wales, 6.8 per cent in Victoria, 10.4 per cent in Queensland, 9.9 per cent in South Australia and 13.2 per cent in Tasmania. On conveyance duty, the forecasting error was 32.4 per cent in Western Australia, 28.3 per cent in New South Wales, 31.4 per cent in Victoria, 36.3 per cent in Queensland, 57.1 per cent in South Australia and 60.7 per cent in Tasmania. As the federal Minister for Finance and Administration Senator Nick Minchin pointed out when responding to the same issue at a federal level, International Monetary Fund research has indicated that underestimating forecasts is a worldwide problem. The issue regarding the surplus outcome for this financial year is that the revenue estimates are tracking with the latest revenue estimates presented to this house when I delivered the budget on 10 May. Mr T. Buswell : No, they are not. Mr E.S. RIPPER : If the member calls 83.4 per cent of revenue for the year over 83 per cent of the year not tracking, he has a different way of viewing the circumstances than I do. When I produced the budget on 10 May and forecast the outcome for this financial year, I obviously gave revenue estimates that are tracking with the April end-of-year results. We might - I repeat, might - get a bigger than expected surplus if government agencies underspend because they are unable to recruit staff. That is not an ongoing position; they still can have the capacity to carryover that expenditure into further years. Therefore, it is not necessarily expenditure that would be available for new capital works, because it is committed. However, if we get a bigger surplus as a result of stronger and longer economic growth, that will give the state additional financial capacity. A range of exciting projects are awaiting government consideration that must be juggled within the financial parameters. The government and the community must make choices, even though we have more financial capacity than we did when we were elected and when the economy was getting smaller and there had been five budget deficits out of eight. We still must make choices. The government will carefully think about how this financial capacity that we have should be used to the best advantage of the community.
(3) Given that the record surplus has been built on the back of unprecedented tax hikes, does the Treasurer still support the comments from members on his own frontbench that Western Australia cannot afford to build a new stadium and a new children’s hospital? Mr E.S. RIPPER replied: (1)-(3) Our taxes are lower than those of the other states as a share of our economy. Across the forward estimates, taxes as a share of our economy will be either the lowest or second lowest of the states. I reject the premise of the member’s question relating to tax. I have some interesting figures on budget forecasting errors. I have an interstate comparison of a review of revenue forecasting that was conducted by the Department of Treasury and Finance at the instigation of the government. On taxation revenue between 2001 and 2004-05, the forecasting error was 10.1 per cent in Western Australia, 6.7 per cent in New South Wales, 6.8 per cent in Victoria, 10.4 per cent in Queensland, 9.9 per cent in South Australia and 13.2 per cent in Tasmania. On conveyance duty, the forecasting error was 32.4 per cent in Western Australia, 28.3 per cent in New South Wales, 31.4 per cent in Victoria, 36.3 per cent in Queensland, 57.1 per cent in South Australia and 60.7 per cent in Tasmania. As the federal Minister for Finance and Administration Senator Nick Minchin pointed out when responding to the same issue at a federal level, International Monetary Fund research has indicated that underestimating forecasts is a worldwide problem. The issue regarding the surplus outcome for this financial year is that the revenue estimates are tracking with the latest revenue estimates presented to this house when I delivered the budget on 10 May. Mr T. Buswell : No, they are not. Mr E.S. RIPPER : If the member calls 83.4 per cent of revenue for the year over 83 per cent of the year not tracking, he has a different way of viewing the circumstances than I do. When I produced the budget on 10 May and forecast the outcome for this financial year, I obviously gave revenue estimates that are tracking with the April end-of-year results. We might - I repeat, might - get a bigger than expected surplus if government agencies underspend because they are unable to recruit staff. That is not an ongoing position; they still can have the capacity to carryover that expenditure into further years. Therefore, it is not necessarily expenditure that would be available for new capital works, because it is committed. However, if we get a bigger surplus as a result of stronger and longer economic growth, that will give the state additional financial capacity. A range of exciting projects are awaiting government consideration that must be juggled within the financial parameters. The government and the community must make choices, even though we have more financial capacity than we did when we were elected and when the economy was getting smaller and there had been five budget deficits out of eight. We still must make choices. The government will carefully think about how this financial capacity that we have should be used to the best advantage of the community.
Mr E.S. RIPPER replied: (1)-(3) Our taxes are lower than those of the other states as a share of our economy. Across the forward estimates, taxes as a share of our economy will be either the lowest or second lowest of the states. I reject the premise of the member’s question relating to tax. I have some interesting figures on budget forecasting errors. I have an interstate comparison of a review of revenue forecasting that was conducted by the Department of Treasury and Finance at the instigation of the government. On taxation revenue between 2001 and 2004-05, the forecasting error was 10.1 per cent in Western Australia, 6.7 per cent in New South Wales, 6.8 per cent in Victoria, 10.4 per cent in Queensland, 9.9 per cent in South Australia and 13.2 per cent in Tasmania. On conveyance duty, the forecasting error was 32.4 per cent in Western Australia, 28.3 per cent in New South Wales, 31.4 per cent in Victoria, 36.3 per cent in Queensland, 57.1 per cent in South Australia and 60.7 per cent in Tasmania. As the federal Minister for Finance and Administration Senator Nick Minchin pointed out when responding to the same issue at a federal level, International Monetary Fund research has indicated that underestimating forecasts is a worldwide problem. The issue regarding the surplus outcome for this financial year is that the revenue estimates are tracking with the latest revenue estimates presented to this house when I delivered the budget on 10 May. Mr T. Buswell : No, they are not. Mr E.S. RIPPER : If the member calls 83.4 per cent of revenue for the year over 83 per cent of the year not tracking, he has a different way of viewing the circumstances than I do. When I produced the budget on 10 May and forecast the outcome for this financial year, I obviously gave revenue estimates that are tracking with the April end-of-year results. We might - I repeat, might - get a bigger than expected surplus if government agencies underspend because they are unable to recruit staff. That is not an ongoing position; they still can have the capacity to carryover that expenditure into further years. Therefore, it is not necessarily expenditure that would be available for new capital works, because it is committed. However, if we get a bigger surplus as a result of stronger and longer economic growth, that will give the state additional financial capacity. A range of exciting projects are awaiting government consideration that must be juggled within the financial parameters. The government and the community must make choices, even though we have more financial capacity than we did when we were elected and when the economy was getting smaller and there had been five budget deficits out of eight. We still must make choices. The government will carefully think about how this financial capacity that we have should be used to the best advantage of the community.
(1)-(3) Our taxes are lower than those of the other states as a share of our economy. Across the forward estimates, taxes as a share of our economy will be either the lowest or second lowest of the states. I reject the premise of the member’s question relating to tax. I have some interesting figures on budget forecasting errors. I have an interstate comparison of a review of revenue forecasting that was conducted by the Department of Treasury and Finance at the instigation of the government. On taxation revenue between 2001 and 2004-05, the forecasting error was 10.1 per cent in Western Australia, 6.7 per cent in New South Wales, 6.8 per cent in Victoria, 10.4 per cent in Queensland, 9.9 per cent in South Australia and 13.2 per cent in Tasmania. On conveyance duty, the forecasting error was 32.4 per cent in Western Australia, 28.3 per cent in New South Wales, 31.4 per cent in Victoria, 36.3 per cent in Queensland, 57.1 per cent in South Australia and 60.7 per cent in Tasmania. As the federal Minister for Finance and Administration Senator Nick Minchin pointed out when responding to the same issue at a federal level, International Monetary Fund research has indicated that underestimating forecasts is a worldwide problem. The issue regarding the surplus outcome for this financial year is that the revenue estimates are tracking with the latest revenue estimates presented to this house when I delivered the budget on 10 May. Mr T. Buswell : No, they are not. Mr E.S. RIPPER : If the member calls 83.4 per cent of revenue for the year over 83 per cent of the year not tracking, he has a different way of viewing the circumstances than I do. When I produced the budget on 10 May and forecast the outcome for this financial year, I obviously gave revenue estimates that are tracking with the April end-of-year results. We might - I repeat, might - get a bigger than expected surplus if government agencies underspend because they are unable to recruit staff. That is not an ongoing position; they still can have the capacity to carryover that expenditure into further years. Therefore, it is not necessarily expenditure that would be available for new capital works, because it is committed. However, if we get a bigger surplus as a result of stronger and longer economic growth, that will give the state additional financial capacity. A range of exciting projects are awaiting government consideration that must be juggled within the financial parameters. The government and the community must make choices, even though we have more financial capacity than we did when we were elected and when the economy was getting smaller and there had been five budget deficits out of eight. We still must make choices. The government will carefully think about how this financial capacity that we have should be used to the best advantage of the community.
Mr T. Buswell : No, they are not. Mr E.S. RIPPER : If the member calls 83.4 per cent of revenue for the year over 83 per cent of the year not tracking, he has a different way of viewing the circumstances than I do. When I produced the budget on 10 May and forecast the outcome for this financial year, I obviously gave revenue estimates that are tracking with the April end-of-year results. We might - I repeat, might - get a bigger than expected surplus if government agencies underspend because they are unable to recruit staff. That is not an ongoing position; they still can have the capacity to carryover that expenditure into further years. Therefore, it is not necessarily expenditure that would be available for new capital works, because it is committed. However, if we get a bigger surplus as a result of stronger and longer economic growth, that will give the state additional financial capacity. A range of exciting projects are awaiting government consideration that must be juggled within the financial parameters. The government and the community must make choices, even though we have more financial capacity than we did when we were elected and when the economy was getting smaller and there had been five budget deficits out of eight. We still must make choices. The government will carefully think about how this financial capacity that we have should be used to the best advantage of the community.
Mr E.S. RIPPER : If the member calls 83.4 per cent of revenue for the year over 83 per cent of the year not tracking, he has a different way of viewing the circumstances than I do. When I produced the budget on 10 May and forecast the outcome for this financial year, I obviously gave revenue estimates that are tracking with the April end-of-year results. We might - I repeat, might - get a bigger than expected surplus if government agencies underspend because they are unable to recruit staff. That is not an ongoing position; they still can have the capacity to carryover that expenditure into further years. Therefore, it is not necessarily expenditure that would be available for new capital works, because it is committed. However, if we get a bigger surplus as a result of stronger and longer economic growth, that will give the state additional financial capacity. A range of exciting projects are awaiting government consideration that must be juggled within the financial parameters. The government and the community must make choices, even though we have more financial capacity than we did when we were elected and when the economy was getting smaller and there had been five budget deficits out of eight. We still must make choices. The government will carefully think about how this financial capacity that we have should be used to the best advantage of the community.
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