❓ Mr Wyatt questions the Premier about the financial impact of the proposed GST floor for Western Australia. The Premier explains the floor's function and timing, but doesn't provide a specific revenue figure, leading to interjections and a somewhat combative exchange.
AnsweredQoN 506Legislative Assembly
QuestionView source ↗
GOODS AND SERVICES TAX DISTRIBUTION
506. Mr B.S. WYATT to the Premier:
I refer to the Premier's
statement to the house yesterday regarding the proposed GST floor when he said —
The objective of the Prime Minister
is to have that system in place this year.
How much extra revenue will Western Australia
receive over the forward estimates as a result of that floor?
506. Mr B.S. WYATT to the Premier:
I refer to the Premier's
statement to the house yesterday regarding the proposed GST floor when he said —
The objective of the Prime Minister
is to have that system in place this year.
How much extra revenue will Western Australia
receive over the forward estimates as a result of that floor?
AnswerView source ↗
Surely the member for Victoria Park
understands that. The Prime Minister's announcement, which was very
brave and greatly appreciated by this government —
Several members interjected.
Mr
C.J. BARNETT : It was.
Dr
M.D. Nahan : By all Western Australians, except you.
Mr
C.J. BARNETT : Absolutely; it was. To his credit, I think that Kevin Rudd
understood the issue and was willing to take it up. Julia Gillard was
disinterested. Tony Abbott tried to take it up.
Mr
D.J. Kelly interjected.
Mr
C.J. BARNETT : As the Prime Minister made very clear, the arrangement is
that when Western Australia's share of the GST rises above a certain
level—the proposed floor—it will then be enshrined as a floor.
The state's GST, somewhat ironically, will rise over coming years
because of the delay effect. On Treasury projections, in 2019 it will push
through above 70c in the dollar, and perhaps up to 75c.
Mr
B.S. Wyatt : What's happening this year then?
Mr
C.J. BARNETT : I am trying to answer the member's question.
Mr
D.J. Kelly interjected.
Mr
C.J. BARNETT : There is no point, Mr Speaker.
The
SPEAKER : Member for Bassendean, I call you to order for the first time.
Mr
C.J. BARNETT : When the share of GST rises above what the Prime Minister
determines the floor will be, then it will be enshrined as a floor. No; it will
not produce additional money beyond the rise —
Several members interjected.
Mr
C.J. BARNETT : If members opposite did not understand that, I really feel
sorry for them. The Prime Minister was absolutely clear that when our share of
the GST rises above the floor, the floor will be put in place for Western Australia
and every other state. As it is, the current arrangement will prevail and our
GST will rise progressively over the coming three years. That is the deal. That
is the only —
Mr
M. McGowan : Where's the extra money and how much extra money?
Mr
C.J. BARNETT : Ask a question if you want to, son, but I am trying to answer
this one. Mr Speaker —
Mrs
M.H. Roberts : Should we call you dad, then?
The
SPEAKER : Members!
Mr
C.J. BARNETT : Yes, if you want to.
Clearly, there were going to be
continuing arguments between states and the like if any state was seen to lose
a single dollar. Under this arrangement, no state will gain an extra dollar in
the short term and no state will lose an extra dollar, but a floor will be put
in place, which means that in the future, never again will Western Australia,
or any other state, face such a collapse in its revenues. Indeed, this is in
the interests of the fundamental tax reform that John Howard put in place. It
is an elegant solution; it is the right solution. I have been arguing for a 75c
floor since I have been Premier, but it has not just —
Several members interjected.
Mr
C.J. BARNETT : It is not just about Western Australia. The distribution of
the GST system is broken; it has outlived its usefulness. I take a bit of a national
view and most states —
Mr
D.J. Kelly : Are you Premier of Tasmania now?
Mr
C.J. BARNETT : Mr Speaker, I am happy to answer questions but I will not
respond to fools like that.
understands that. The Prime Minister's announcement, which was very
brave and greatly appreciated by this government —
Several members interjected.
Mr
C.J. BARNETT : It was.
Dr
M.D. Nahan : By all Western Australians, except you.
Mr
C.J. BARNETT : Absolutely; it was. To his credit, I think that Kevin Rudd
understood the issue and was willing to take it up. Julia Gillard was
disinterested. Tony Abbott tried to take it up.
Mr
D.J. Kelly interjected.
Mr
C.J. BARNETT : As the Prime Minister made very clear, the arrangement is
that when Western Australia's share of the GST rises above a certain
level—the proposed floor—it will then be enshrined as a floor.
The state's GST, somewhat ironically, will rise over coming years
because of the delay effect. On Treasury projections, in 2019 it will push
through above 70c in the dollar, and perhaps up to 75c.
Mr
B.S. Wyatt : What's happening this year then?
Mr
C.J. BARNETT : I am trying to answer the member's question.
Mr
D.J. Kelly interjected.
Mr
C.J. BARNETT : There is no point, Mr Speaker.
The
SPEAKER : Member for Bassendean, I call you to order for the first time.
Mr
C.J. BARNETT : When the share of GST rises above what the Prime Minister
determines the floor will be, then it will be enshrined as a floor. No; it will
not produce additional money beyond the rise —
Several members interjected.
Mr
C.J. BARNETT : If members opposite did not understand that, I really feel
sorry for them. The Prime Minister was absolutely clear that when our share of
the GST rises above the floor, the floor will be put in place for Western Australia
and every other state. As it is, the current arrangement will prevail and our
GST will rise progressively over the coming three years. That is the deal. That
is the only —
Mr
M. McGowan : Where's the extra money and how much extra money?
Mr
C.J. BARNETT : Ask a question if you want to, son, but I am trying to answer
this one. Mr Speaker —
Mrs
M.H. Roberts : Should we call you dad, then?
The
SPEAKER : Members!
Mr
C.J. BARNETT : Yes, if you want to.
Clearly, there were going to be
continuing arguments between states and the like if any state was seen to lose
a single dollar. Under this arrangement, no state will gain an extra dollar in
the short term and no state will lose an extra dollar, but a floor will be put
in place, which means that in the future, never again will Western Australia,
or any other state, face such a collapse in its revenues. Indeed, this is in
the interests of the fundamental tax reform that John Howard put in place. It
is an elegant solution; it is the right solution. I have been arguing for a 75c
floor since I have been Premier, but it has not just —
Several members interjected.
Mr
C.J. BARNETT : It is not just about Western Australia. The distribution of
the GST system is broken; it has outlived its usefulness. I take a bit of a national
view and most states —
Mr
D.J. Kelly : Are you Premier of Tasmania now?
Mr
C.J. BARNETT : Mr Speaker, I am happy to answer questions but I will not
respond to fools like that.
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