❓ WA Treasurer addresses claims about GST revenue, highlighting a shortfall due to federal government policies, accusing the federal treasurer of implementing 'scams' that negatively impact WA's budget.
AnsweredQoN 300Legislative Assembly
QuestionView source ↗
GOODS AND SERVICES TAX, REVENUE TO WESTERN AUSTRALIA 300. Mr HILL to the Treasurer: Is the Treasurer aware of claims made on the Australian Broadcasting Corporation, Bunbury “Drive-time” radio program last Friday, by the federal member for Forrest, that Western Australia has received $2.6 billion in goods and services tax revenue from the Commonwealth and that this, and other payments, represents increased federal funding to the State? Mr RIPPER
AnswerView source ↗
I am aware of these claims by the federal member for Forrest, but when I saw them I was a bit surprised because I had forgotten that the federal member for Forrest was still in politics. I suppose that the sleepiest federal member wakes up just before an election. There is no GST bonanza for the States. I will explain how the GST works. To maintain parity with arrangements prior to the introduction of the GST, Western Australia needs to receive around $2.9 billion in GST revenue. Western Australia receives $2.6 billion in GST revenue, which is then topped up with budget balancing assistance of $181 million. Those members who are quick at mental arithmetic will realise that leaves a shortfall of $65 million. The shortfall arises because of two of Peter Costello’s scams. The first scam was the growth dividend. He said that the economy would grow faster because of the GST. What a joke! He said that we would therefore get less commonwealth assistance. The second scam was the embedded wholesale sales tax savings that were supposed to eventuate. Let us look at the growth dividend. The domestic Western Australian economy shrank by half a per cent in the year to the end of the March quarter. Did the Commonwealth restore the growth dividend to this State? No, Peter Costello took it away. Last year the State lost $8.5 million, this year it will lose $11.5 million and over four years it will lose $71.8 million as a result of the so-called growth dividend. Let us look at the second scam of the embedded wholesale sales tax savings. This scam was based on a proposition that state government agencies would save money because so-called embedded wholesale sales tax would disappear from the costs of their inputs. The State took all the risk on that because the Commonwealth took the money away from it up front. It was $50 million in 2000-01 and $53.4 million in 2001-02. As a result, each state agency has been forced to take a proportional cut in its budget. There is no GST bonanza for the States. We have a very difficult situation. On the one hand, Peter Costello’s scams were endorsed by the previous coalition Government and, on the other hand, the Leader of the Opposition and his colleagues when in government behaved like the Treasurer of the Weimar Republic in the way in which they dealt with expenditure. As a result we have inherited a very difficult set of finances.
GOODS AND SERVICES TAX, REVENUE TO WESTERN AUSTRALIA
Is the Treasurer aware of claims made on the Australian Broadcasting Corporation, Bunbury “Drive-time” radio program last Friday, by the federal member for Forrest, that Western Australia has received $2.6 billion in goods and services tax revenue from the Commonwealth and that this, and other payments, represents increased federal funding to the State? Mr RIPPER replied: I am aware of these claims by the federal member for Forrest, but when I saw them I was a bit surprised because I had forgotten that the federal member for Forrest was still in politics. I suppose that the sleepiest federal member wakes up just before an election. There is no GST bonanza for the States. I will explain how the GST works. To maintain parity with arrangements prior to the introduction of the GST, Western Australia needs to receive around $2.9 billion in GST revenue. Western Australia receives $2.6 billion in GST revenue, which is then topped up with budget balancing assistance of $181 million. Those members who are quick at mental arithmetic will realise that leaves a shortfall of $65 million. The shortfall arises because of two of Peter Costello’s scams. The first scam was the growth dividend. He said that the economy would grow faster because of the GST. What a joke! He said that we would therefore get less commonwealth assistance. The second scam was the embedded wholesale sales tax savings that were supposed to eventuate. Let us look at the growth dividend. The domestic Western Australian economy shrank by half a per cent in the year to the end of the March quarter. Did the Commonwealth restore the growth dividend to this State? No, Peter Costello took it away. Last year the State lost $8.5 million, this year it will lose $11.5 million and over four years it will lose $71.8 million as a result of the so-called growth dividend. Let us look at the second scam of the embedded wholesale sales tax savings. This scam was based on a proposition that state government agencies would save money because so-called embedded wholesale sales tax would disappear from the costs of their inputs. The State took all the risk on that because the Commonwealth took the money away from it up front. It was $50 million in 2000-01 and $53.4 million in 2001-02. As a result, each state agency has been forced to take a proportional cut in its budget. There is no GST bonanza for the States. We have a very difficult situation. On the one hand, Peter Costello’s scams were endorsed by the previous coalition Government and, on the other hand, the Leader of the Opposition and his colleagues when in government behaved like the Treasurer of the Weimar Republic in the way in which they dealt with expenditure. As a result we have inherited a very difficult set of finances.
Mr RIPPER replied: I am aware of these claims by the federal member for Forrest, but when I saw them I was a bit surprised because I had forgotten that the federal member for Forrest was still in politics. I suppose that the sleepiest federal member wakes up just before an election. There is no GST bonanza for the States. I will explain how the GST works. To maintain parity with arrangements prior to the introduction of the GST, Western Australia needs to receive around $2.9 billion in GST revenue. Western Australia receives $2.6 billion in GST revenue, which is then topped up with budget balancing assistance of $181 million. Those members who are quick at mental arithmetic will realise that leaves a shortfall of $65 million. The shortfall arises because of two of Peter Costello’s scams. The first scam was the growth dividend. He said that the economy would grow faster because of the GST. What a joke! He said that we would therefore get less commonwealth assistance. The second scam was the embedded wholesale sales tax savings that were supposed to eventuate. Let us look at the growth dividend. The domestic Western Australian economy shrank by half a per cent in the year to the end of the March quarter. Did the Commonwealth restore the growth dividend to this State? No, Peter Costello took it away. Last year the State lost $8.5 million, this year it will lose $11.5 million and over four years it will lose $71.8 million as a result of the so-called growth dividend. Let us look at the second scam of the embedded wholesale sales tax savings. This scam was based on a proposition that state government agencies would save money because so-called embedded wholesale sales tax would disappear from the costs of their inputs. The State took all the risk on that because the Commonwealth took the money away from it up front. It was $50 million in 2000-01 and $53.4 million in 2001-02. As a result, each state agency has been forced to take a proportional cut in its budget. There is no GST bonanza for the States. We have a very difficult situation. On the one hand, Peter Costello’s scams were endorsed by the previous coalition Government and, on the other hand, the Leader of the Opposition and his colleagues when in government behaved like the Treasurer of the Weimar Republic in the way in which they dealt with expenditure. As a result we have inherited a very difficult set of finances.
I am aware of these claims by the federal member for Forrest, but when I saw them I was a bit surprised because I had forgotten that the federal member for Forrest was still in politics. I suppose that the sleepiest federal member wakes up just before an election. There is no GST bonanza for the States. I will explain how the GST works. To maintain parity with arrangements prior to the introduction of the GST, Western Australia needs to receive around $2.9 billion in GST revenue. Western Australia receives $2.6 billion in GST revenue, which is then topped up with budget balancing assistance of $181 million. Those members who are quick at mental arithmetic will realise that leaves a shortfall of $65 million. The shortfall arises because of two of Peter Costello’s scams. The first scam was the growth dividend. He said that the economy would grow faster because of the GST. What a joke! He said that we would therefore get less commonwealth assistance. The second scam was the embedded wholesale sales tax savings that were supposed to eventuate. Let us look at the growth dividend. The domestic Western Australian economy shrank by half a per cent in the year to the end of the March quarter. Did the Commonwealth restore the growth dividend to this State? No, Peter Costello took it away. Last year the State lost $8.5 million, this year it will lose $11.5 million and over four years it will lose $71.8 million as a result of the so-called growth dividend. Let us look at the second scam of the embedded wholesale sales tax savings. This scam was based on a proposition that state government agencies would save money because so-called embedded wholesale sales tax would disappear from the costs of their inputs. The State took all the risk on that because the Commonwealth took the money away from it up front. It was $50 million in 2000-01 and $53.4 million in 2001-02. As a result, each state agency has been forced to take a proportional cut in its budget. There is no GST bonanza for the States. We have a very difficult situation. On the one hand, Peter Costello’s scams were endorsed by the previous coalition Government and, on the other hand, the Leader of the Opposition and his colleagues when in government behaved like the Treasurer of the Weimar Republic in the way in which they dealt with expenditure. As a result we have inherited a very difficult set of finances.
Let us look at the growth dividend. The domestic Western Australian economy shrank by half a per cent in the year to the end of the March quarter. Did the Commonwealth restore the growth dividend to this State? No, Peter Costello took it away. Last year the State lost $8.5 million, this year it will lose $11.5 million and over four years it will lose $71.8 million as a result of the so-called growth dividend. Let us look at the second scam of the embedded wholesale sales tax savings. This scam was based on a proposition that state government agencies would save money because so-called embedded wholesale sales tax would disappear from the costs of their inputs. The State took all the risk on that because the Commonwealth took the money away from it up front. It was $50 million in 2000-01 and $53.4 million in 2001-02. As a result, each state agency has been forced to take a proportional cut in its budget. There is no GST bonanza for the States. We have a very difficult situation. On the one hand, Peter Costello’s scams were endorsed by the previous coalition Government and, on the other hand, the Leader of the Opposition and his colleagues when in government behaved like the Treasurer of the Weimar Republic in the way in which they dealt with expenditure. As a result we have inherited a very difficult set of finances.
There is no GST bonanza for the States. We have a very difficult situation. On the one hand, Peter Costello’s scams were endorsed by the previous coalition Government and, on the other hand, the Leader of the Opposition and his colleagues when in government behaved like the Treasurer of the Weimar Republic in the way in which they dealt with expenditure. As a result we have inherited a very difficult set of finances.
GOODS AND SERVICES TAX, REVENUE TO WESTERN AUSTRALIA
Is the Treasurer aware of claims made on the Australian Broadcasting Corporation, Bunbury “Drive-time” radio program last Friday, by the federal member for Forrest, that Western Australia has received $2.6 billion in goods and services tax revenue from the Commonwealth and that this, and other payments, represents increased federal funding to the State? Mr RIPPER replied: I am aware of these claims by the federal member for Forrest, but when I saw them I was a bit surprised because I had forgotten that the federal member for Forrest was still in politics. I suppose that the sleepiest federal member wakes up just before an election. There is no GST bonanza for the States. I will explain how the GST works. To maintain parity with arrangements prior to the introduction of the GST, Western Australia needs to receive around $2.9 billion in GST revenue. Western Australia receives $2.6 billion in GST revenue, which is then topped up with budget balancing assistance of $181 million. Those members who are quick at mental arithmetic will realise that leaves a shortfall of $65 million. The shortfall arises because of two of Peter Costello’s scams. The first scam was the growth dividend. He said that the economy would grow faster because of the GST. What a joke! He said that we would therefore get less commonwealth assistance. The second scam was the embedded wholesale sales tax savings that were supposed to eventuate. Let us look at the growth dividend. The domestic Western Australian economy shrank by half a per cent in the year to the end of the March quarter. Did the Commonwealth restore the growth dividend to this State? No, Peter Costello took it away. Last year the State lost $8.5 million, this year it will lose $11.5 million and over four years it will lose $71.8 million as a result of the so-called growth dividend. Let us look at the second scam of the embedded wholesale sales tax savings. This scam was based on a proposition that state government agencies would save money because so-called embedded wholesale sales tax would disappear from the costs of their inputs. The State took all the risk on that because the Commonwealth took the money away from it up front. It was $50 million in 2000-01 and $53.4 million in 2001-02. As a result, each state agency has been forced to take a proportional cut in its budget. There is no GST bonanza for the States. We have a very difficult situation. On the one hand, Peter Costello’s scams were endorsed by the previous coalition Government and, on the other hand, the Leader of the Opposition and his colleagues when in government behaved like the Treasurer of the Weimar Republic in the way in which they dealt with expenditure. As a result we have inherited a very difficult set of finances.
Mr RIPPER replied: I am aware of these claims by the federal member for Forrest, but when I saw them I was a bit surprised because I had forgotten that the federal member for Forrest was still in politics. I suppose that the sleepiest federal member wakes up just before an election. There is no GST bonanza for the States. I will explain how the GST works. To maintain parity with arrangements prior to the introduction of the GST, Western Australia needs to receive around $2.9 billion in GST revenue. Western Australia receives $2.6 billion in GST revenue, which is then topped up with budget balancing assistance of $181 million. Those members who are quick at mental arithmetic will realise that leaves a shortfall of $65 million. The shortfall arises because of two of Peter Costello’s scams. The first scam was the growth dividend. He said that the economy would grow faster because of the GST. What a joke! He said that we would therefore get less commonwealth assistance. The second scam was the embedded wholesale sales tax savings that were supposed to eventuate. Let us look at the growth dividend. The domestic Western Australian economy shrank by half a per cent in the year to the end of the March quarter. Did the Commonwealth restore the growth dividend to this State? No, Peter Costello took it away. Last year the State lost $8.5 million, this year it will lose $11.5 million and over four years it will lose $71.8 million as a result of the so-called growth dividend. Let us look at the second scam of the embedded wholesale sales tax savings. This scam was based on a proposition that state government agencies would save money because so-called embedded wholesale sales tax would disappear from the costs of their inputs. The State took all the risk on that because the Commonwealth took the money away from it up front. It was $50 million in 2000-01 and $53.4 million in 2001-02. As a result, each state agency has been forced to take a proportional cut in its budget. There is no GST bonanza for the States. We have a very difficult situation. On the one hand, Peter Costello’s scams were endorsed by the previous coalition Government and, on the other hand, the Leader of the Opposition and his colleagues when in government behaved like the Treasurer of the Weimar Republic in the way in which they dealt with expenditure. As a result we have inherited a very difficult set of finances.
I am aware of these claims by the federal member for Forrest, but when I saw them I was a bit surprised because I had forgotten that the federal member for Forrest was still in politics. I suppose that the sleepiest federal member wakes up just before an election. There is no GST bonanza for the States. I will explain how the GST works. To maintain parity with arrangements prior to the introduction of the GST, Western Australia needs to receive around $2.9 billion in GST revenue. Western Australia receives $2.6 billion in GST revenue, which is then topped up with budget balancing assistance of $181 million. Those members who are quick at mental arithmetic will realise that leaves a shortfall of $65 million. The shortfall arises because of two of Peter Costello’s scams. The first scam was the growth dividend. He said that the economy would grow faster because of the GST. What a joke! He said that we would therefore get less commonwealth assistance. The second scam was the embedded wholesale sales tax savings that were supposed to eventuate. Let us look at the growth dividend. The domestic Western Australian economy shrank by half a per cent in the year to the end of the March quarter. Did the Commonwealth restore the growth dividend to this State? No, Peter Costello took it away. Last year the State lost $8.5 million, this year it will lose $11.5 million and over four years it will lose $71.8 million as a result of the so-called growth dividend. Let us look at the second scam of the embedded wholesale sales tax savings. This scam was based on a proposition that state government agencies would save money because so-called embedded wholesale sales tax would disappear from the costs of their inputs. The State took all the risk on that because the Commonwealth took the money away from it up front. It was $50 million in 2000-01 and $53.4 million in 2001-02. As a result, each state agency has been forced to take a proportional cut in its budget. There is no GST bonanza for the States. We have a very difficult situation. On the one hand, Peter Costello’s scams were endorsed by the previous coalition Government and, on the other hand, the Leader of the Opposition and his colleagues when in government behaved like the Treasurer of the Weimar Republic in the way in which they dealt with expenditure. As a result we have inherited a very difficult set of finances.
Let us look at the growth dividend. The domestic Western Australian economy shrank by half a per cent in the year to the end of the March quarter. Did the Commonwealth restore the growth dividend to this State? No, Peter Costello took it away. Last year the State lost $8.5 million, this year it will lose $11.5 million and over four years it will lose $71.8 million as a result of the so-called growth dividend. Let us look at the second scam of the embedded wholesale sales tax savings. This scam was based on a proposition that state government agencies would save money because so-called embedded wholesale sales tax would disappear from the costs of their inputs. The State took all the risk on that because the Commonwealth took the money away from it up front. It was $50 million in 2000-01 and $53.4 million in 2001-02. As a result, each state agency has been forced to take a proportional cut in its budget. There is no GST bonanza for the States. We have a very difficult situation. On the one hand, Peter Costello’s scams were endorsed by the previous coalition Government and, on the other hand, the Leader of the Opposition and his colleagues when in government behaved like the Treasurer of the Weimar Republic in the way in which they dealt with expenditure. As a result we have inherited a very difficult set of finances.
There is no GST bonanza for the States. We have a very difficult situation. On the one hand, Peter Costello’s scams were endorsed by the previous coalition Government and, on the other hand, the Leader of the Opposition and his colleagues when in government behaved like the Treasurer of the Weimar Republic in the way in which they dealt with expenditure. As a result we have inherited a very difficult set of finances.
Explore WA Government Data
Search the full archive in the free dashboard, or query programmatically via API.
Explore more
Government Gazette
Appointments, regulatory notices, planning changes.
Hansard
Debates, questions, speeches and sentiment.
Tabled Papers
Reports and documents tabled in Parliament.
Committees
Committee profiles and recent reports.
Regulations
Subsidiary legislation with filters and summaries.
Bills
Proposed laws and parliamentary progress.
Acts
Current WA legislation and summaries.
Explanatory Memoranda
Bills with EMs (text/PDF) available.
Members
MP profiles, party breakdown and rankings.
Pollie Rankings
Data-driven rankings across 19 categories.
Amendment Chains
Track how schemes and regulations evolve over time.