WA Treasurer expresses concerns about the upcoming federal budget, highlighting disparities in revenue growth between the Commonwealth and WA, and potential cuts to key services like disability and housing. He criticises the Commonwealth's funding allocation to WA.

AnsweredQoN 693Legislative Assembly
Asked
13 May 2003
Portfolio
Treasurer

QuestionView source ↗

What are the State Government’s expectations of the federal budget to be handed down this evening? Mr E.S. RIPPER

AnswerView source ↗

The State Government, along with all Western Australians, will be paying attention to the federal budget that will be handed down this evening. We will be looking at two aspects. We will be looking, first, at the revenue growth being experienced by the Commonwealth. We will then be looking at how the Commonwealth will spend that revenue. Just on those two fronts, in the forthcoming year the State Government will experience revenue growth of just 2.1 per cent. That is much less than the rate of inflation. We will be concentrating our expenditure on key priority areas. Nearly 90 per cent of the additional expenditure in this budget will be on health, education and law and order. Let us turn to the Commonwealth. The latest estimates show that commonwealth revenue is expected to increase by six per cent in 2003-04. Let us remember that figure. Its revenue will increase by six per cent, more than double the rate of inflation, while its level of grants to Western Australia will increase by just 0.9 per cent. The Commonwealth is enjoying revenue growth in real terms, much more than the rate of inflation, while it is cutting grants to Western Australia in real terms. We will be examining also the impact of the federal budget on Western Australians in the key areas of health, education, housing and disability services. I regret to advise the House that growth in commonwealth funding for disability services is likely to be less than half that received under the last five-year agreement. Therefore, the state contribution to growth in the disability services area for five years will be $60.3 million compared with only $8.5 million from the Commonwealth. In housing there is likely to be a net reduction in funding of $21 million over five years. We know, of course, that the Commonwealth is trying to restrict access to key services and payments, such as the disability support pension and pharmaceutical benefits. No-one need tell me that the budget is a hard time for Treasurers and Governments. We are not making an ambit claim on the Commonwealth Government, but we expect a fair deal for Western Australians. We expect some sort of balance between company and income tax paid by Western Australians and the amount we get back from the Commonwealth for infrastructure, disability services, the health system and the housing system. Currently, Western Australians pay $3 billion a year more tax to the Commonwealth than they get back in the form of direct commonwealth expenditure in Western Australia and commonwealth grants to local government and the State. It is equivalent to every Western Australian subsidising the rest of Australia by $1 700 a year. It is about time it changed and it is about time that the so-called loyal Opposition was loyal to Western Australia and stood up for Western Australia on this issue.
Mr E.S. RIPPER replied: The State Government, along with all Western Australians, will be paying attention to the federal budget that will be handed down this evening. We will be looking at two aspects. We will be looking, first, at the revenue growth being experienced by the Commonwealth. We will then be looking at how the Commonwealth will spend that revenue. Just on those two fronts, in the forthcoming year the State Government will experience revenue growth of just 2.1 per cent. That is much less than the rate of inflation. We will be concentrating our expenditure on key priority areas. Nearly 90 per cent of the additional expenditure in this budget will be on health, education and law and order. Let us turn to the Commonwealth. The latest estimates show that commonwealth revenue is expected to increase by six per cent in 2003-04. Let us remember that figure. Its revenue will increase by six per cent, more than double the rate of inflation, while its level of grants to Western Australia will increase by just 0.9 per cent. The Commonwealth is enjoying revenue growth in real terms, much more than the rate of inflation, while it is cutting grants to Western Australia in real terms. We will be examining also the impact of the federal budget on Western Australians in the key areas of health, education, housing and disability services. I regret to advise the House that growth in commonwealth funding for disability services is likely to be less than half that received under the last five-year agreement. Therefore, the state contribution to growth in the disability services area for five years will be $60.3 million compared with only $8.5 million from the Commonwealth. In housing there is likely to be a net reduction in funding of $21 million over five years. We know, of course, that the Commonwealth is trying to restrict access to key services and payments, such as the disability support pension and pharmaceutical benefits. No-one need tell me that the budget is a hard time for Treasurers and Governments. We are not making an ambit claim on the Commonwealth Government, but we expect a fair deal for Western Australians. We expect some sort of balance between company and income tax paid by Western Australians and the amount we get back from the Commonwealth for infrastructure, disability services, the health system and the housing system. Currently, Western Australians pay $3 billion a year more tax to the Commonwealth than they get back in the form of direct commonwealth expenditure in Western Australia and commonwealth grants to local government and the State. It is equivalent to every Western Australian subsidising the rest of Australia by $1 700 a year. It is about time it changed and it is about time that the so-called loyal Opposition was loyal to Western Australia and stood up for Western Australia on this issue.
The State Government, along with all Western Australians, will be paying attention to the federal budget that will be handed down this evening. We will be looking at two aspects. We will be looking, first, at the revenue growth being experienced by the Commonwealth. We will then be looking at how the Commonwealth will spend that revenue. Just on those two fronts, in the forthcoming year the State Government will experience revenue growth of just 2.1 per cent. That is much less than the rate of inflation. We will be concentrating our expenditure on key priority areas. Nearly 90 per cent of the additional expenditure in this budget will be on health, education and law and order. Let us turn to the Commonwealth. The latest estimates show that commonwealth revenue is expected to increase by six per cent in 2003-04. Let us remember that figure. Its revenue will increase by six per cent, more than double the rate of inflation, while its level of grants to Western Australia will increase by just 0.9 per cent. The Commonwealth is enjoying revenue growth in real terms, much more than the rate of inflation, while it is cutting grants to Western Australia in real terms. We will be examining also the impact of the federal budget on Western Australians in the key areas of health, education, housing and disability services. I regret to advise the House that growth in commonwealth funding for disability services is likely to be less than half that received under the last five-year agreement. Therefore, the state contribution to growth in the disability services area for five years will be $60.3 million compared with only $8.5 million from the Commonwealth. In housing there is likely to be a net reduction in funding of $21 million over five years. We know, of course, that the Commonwealth is trying to restrict access to key services and payments, such as the disability support pension and pharmaceutical benefits. No-one need tell me that the budget is a hard time for Treasurers and Governments. We are not making an ambit claim on the Commonwealth Government, but we expect a fair deal for Western Australians. We expect some sort of balance between company and income tax paid by Western Australians and the amount we get back from the Commonwealth for infrastructure, disability services, the health system and the housing system. Currently, Western Australians pay $3 billion a year more tax to the Commonwealth than they get back in the form of direct commonwealth expenditure in Western Australia and commonwealth grants to local government and the State. It is equivalent to every Western Australian subsidising the rest of Australia by $1 700 a year. It is about time it changed and it is about time that the so-called loyal Opposition was loyal to Western Australia and stood up for Western Australia on this issue.
I regret to advise the House that growth in commonwealth funding for disability services is likely to be less than half that received under the last five-year agreement. Therefore, the state contribution to growth in the disability services area for five years will be $60.3 million compared with only $8.5 million from the Commonwealth. In housing there is likely to be a net reduction in funding of $21 million over five years. We know, of course, that the Commonwealth is trying to restrict access to key services and payments, such as the disability support pension and pharmaceutical benefits. No-one need tell me that the budget is a hard time for Treasurers and Governments. We are not making an ambit claim on the Commonwealth Government, but we expect a fair deal for Western Australians. We expect some sort of balance between company and income tax paid by Western Australians and the amount we get back from the Commonwealth for infrastructure, disability services, the health system and the housing system. Currently, Western Australians pay $3 billion a year more tax to the Commonwealth than they get back in the form of direct commonwealth expenditure in Western Australia and commonwealth grants to local government and the State. It is equivalent to every Western Australian subsidising the rest of Australia by $1 700 a year. It is about time it changed and it is about time that the so-called loyal Opposition was loyal to Western Australia and stood up for Western Australia on this issue.
No-one need tell me that the budget is a hard time for Treasurers and Governments. We are not making an ambit claim on the Commonwealth Government, but we expect a fair deal for Western Australians. We expect some sort of balance between company and income tax paid by Western Australians and the amount we get back from the Commonwealth for infrastructure, disability services, the health system and the housing system. Currently, Western Australians pay $3 billion a year more tax to the Commonwealth than they get back in the form of direct commonwealth expenditure in Western Australia and commonwealth grants to local government and the State. It is equivalent to every Western Australian subsidising the rest of Australia by $1 700 a year. It is about time it changed and it is about time that the so-called loyal Opposition was loyal to Western Australia and stood up for Western Australia on this issue.

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