❓ The Treasurer addresses claims of a GST revenue bonanza for WA, refuting the accuracy of a Liberal Party advertisement and highlighting concerns about Commonwealth funding priorities and cuts to state grants.
AnsweredQoN 1015Legislative Assembly
QuestionView source ↗
Is the Treasurer aware of the so-called “Moore Report” advertising insert in the Wanneroo Times of 21 August 2003, which claims that Western Australia is expecting a bumper return from the goods and services tax next financial year; and, if so, is that an accurate report? Mr E.S. RIPPER
AnswerView source ↗
Mr Speaker, there is a very good old saying that there is no truth in advertising. The insert is, in fact, a paid political advertisement by the federal Liberal member for Moore. The insert states - It was expected to be several years before receipts from the GST would grow fast enough to overtake the Federal grants that the States would have received under the old arrangements. So the Commonwealth promised top-up payments in the meantime. But thanks to unexpectedly strong growth in GST collections, several States, including Western Australia, are expecting a bumper return in the next financial year. Mr Speaker, that federal member is wrong in several respects. The GST replaced not only federal grants but also state taxes that were given up as part of an intergovernmental agreement on taxation reform. Western Australia does not expect to receive any sustained or significant additional funding from the GST until around 2007-08. There is therefore no revenue bonanza from the GST. Only Queensland and the Northern Territory have so far ceased needing top-up budget balancing assistance. All up, about 40 per cent of Western Australia’s income is from commonwealth sources. It is our biggest source of income, greater than state taxes. However, the GST is only one component of those commonwealth grants. The total picture, taking into account all commonwealth funding, indicates that WA’s grants have been cut in real terms this year. Our opponents opposite and their federal colleagues do not like talking about the total picture because it reveals the lie that the States are somehow rolling in extra money. Western Australia’s total commonwealth revenue will grow by only 0.9 per cent this year. If it kept pace with inflation and population growth, we would be $145 million better off. Overall, WA’s revenue this year from all sources is expected to grow by only 2.1 per cent, or less than the rate of inflation. The myth therefore of a GST bonanza is purely that - a myth. Federal members are too sheepish to tell their constituents what is happening. The Commonwealth is reaping a bonanza from income and company tax and its spending is going through the roof. An interesting paper was presented at the last Treasurers’ conference prepared by the Northern Territory Treasury. It indicated that commonwealth revenue and own-purpose expenses are expected to grow at a much faster rate than those of the States. Real growth in commonwealth own-purpose expenses has been funded through the retention of an increased share of commonwealth revenue. Specifically, the total share of national revenue provided for state purposes was forecast to decline from 42 per cent in 1998-99 to 39 per cent in 2005-06. The Commonwealth is earning more, keeping more and spending more; it does not know the meaning of expenditure restraint. I will provide some examples of what the Commonwealth is spending its money on. The 2003-04 federal budget shows that $9.5 million has been allocated to refurbish the Paris embassy apartments; nearly $5 million is to be spent rectifying defects in the Geneva chancery, which is only five years old; and another $5.9 million is to be spent on the Washington embassy, specifically and mainly the kitchen. No doubt this spending is important as those embassies must be in tip-top condition when commonwealth ministers retire and join the diplomatic cocktail party circuit. Those priorities are wrong. The States are being starved of funds for health, education and law and order. Those wrong priorities are revealed in John Howard’s budget papers.
Mr E.S. RIPPER replied: Mr Speaker, there is a very good old saying that there is no truth in advertising. The insert is, in fact, a paid political advertisement by the federal Liberal member for Moore. The insert states - It was expected to be several years before receipts from the GST would grow fast enough to overtake the Federal grants that the States would have received under the old arrangements. So the Commonwealth promised top-up payments in the meantime. But thanks to unexpectedly strong growth in GST collections, several States, including Western Australia, are expecting a bumper return in the next financial year. Mr Speaker, that federal member is wrong in several respects. The GST replaced not only federal grants but also state taxes that were given up as part of an intergovernmental agreement on taxation reform. Western Australia does not expect to receive any sustained or significant additional funding from the GST until around 2007-08. There is therefore no revenue bonanza from the GST. Only Queensland and the Northern Territory have so far ceased needing top-up budget balancing assistance. All up, about 40 per cent of Western Australia’s income is from commonwealth sources. It is our biggest source of income, greater than state taxes. However, the GST is only one component of those commonwealth grants. The total picture, taking into account all commonwealth funding, indicates that WA’s grants have been cut in real terms this year. Our opponents opposite and their federal colleagues do not like talking about the total picture because it reveals the lie that the States are somehow rolling in extra money. Western Australia’s total commonwealth revenue will grow by only 0.9 per cent this year. If it kept pace with inflation and population growth, we would be $145 million better off. Overall, WA’s revenue this year from all sources is expected to grow by only 2.1 per cent, or less than the rate of inflation. The myth therefore of a GST bonanza is purely that - a myth. Federal members are too sheepish to tell their constituents what is happening. The Commonwealth is reaping a bonanza from income and company tax and its spending is going through the roof. An interesting paper was presented at the last Treasurers’ conference prepared by the Northern Territory Treasury. It indicated that commonwealth revenue and own-purpose expenses are expected to grow at a much faster rate than those of the States. Real growth in commonwealth own-purpose expenses has been funded through the retention of an increased share of commonwealth revenue. Specifically, the total share of national revenue provided for state purposes was forecast to decline from 42 per cent in 1998-99 to 39 per cent in 2005-06. The Commonwealth is earning more, keeping more and spending more; it does not know the meaning of expenditure restraint. I will provide some examples of what the Commonwealth is spending its money on. The 2003-04 federal budget shows that $9.5 million has been allocated to refurbish the Paris embassy apartments; nearly $5 million is to be spent rectifying defects in the Geneva chancery, which is only five years old; and another $5.9 million is to be spent on the Washington embassy, specifically and mainly the kitchen. No doubt this spending is important as those embassies must be in tip-top condition when commonwealth ministers retire and join the diplomatic cocktail party circuit. Those priorities are wrong. The States are being starved of funds for health, education and law and order. Those wrong priorities are revealed in John Howard’s budget papers.
Mr Speaker, there is a very good old saying that there is no truth in advertising. The insert is, in fact, a paid political advertisement by the federal Liberal member for Moore. The insert states - It was expected to be several years before receipts from the GST would grow fast enough to overtake the Federal grants that the States would have received under the old arrangements. So the Commonwealth promised top-up payments in the meantime. But thanks to unexpectedly strong growth in GST collections, several States, including Western Australia, are expecting a bumper return in the next financial year. Mr Speaker, that federal member is wrong in several respects. The GST replaced not only federal grants but also state taxes that were given up as part of an intergovernmental agreement on taxation reform. Western Australia does not expect to receive any sustained or significant additional funding from the GST until around 2007-08. There is therefore no revenue bonanza from the GST. Only Queensland and the Northern Territory have so far ceased needing top-up budget balancing assistance. All up, about 40 per cent of Western Australia’s income is from commonwealth sources. It is our biggest source of income, greater than state taxes. However, the GST is only one component of those commonwealth grants. The total picture, taking into account all commonwealth funding, indicates that WA’s grants have been cut in real terms this year. Our opponents opposite and their federal colleagues do not like talking about the total picture because it reveals the lie that the States are somehow rolling in extra money. Western Australia’s total commonwealth revenue will grow by only 0.9 per cent this year. If it kept pace with inflation and population growth, we would be $145 million better off. Overall, WA’s revenue this year from all sources is expected to grow by only 2.1 per cent, or less than the rate of inflation. The myth therefore of a GST bonanza is purely that - a myth. Federal members are too sheepish to tell their constituents what is happening. The Commonwealth is reaping a bonanza from income and company tax and its spending is going through the roof. An interesting paper was presented at the last Treasurers’ conference prepared by the Northern Territory Treasury. It indicated that commonwealth revenue and own-purpose expenses are expected to grow at a much faster rate than those of the States. Real growth in commonwealth own-purpose expenses has been funded through the retention of an increased share of commonwealth revenue. Specifically, the total share of national revenue provided for state purposes was forecast to decline from 42 per cent in 1998-99 to 39 per cent in 2005-06. The Commonwealth is earning more, keeping more and spending more; it does not know the meaning of expenditure restraint. I will provide some examples of what the Commonwealth is spending its money on. The 2003-04 federal budget shows that $9.5 million has been allocated to refurbish the Paris embassy apartments; nearly $5 million is to be spent rectifying defects in the Geneva chancery, which is only five years old; and another $5.9 million is to be spent on the Washington embassy, specifically and mainly the kitchen. No doubt this spending is important as those embassies must be in tip-top condition when commonwealth ministers retire and join the diplomatic cocktail party circuit. Those priorities are wrong. The States are being starved of funds for health, education and law and order. Those wrong priorities are revealed in John Howard’s budget papers.
The total picture, taking into account all commonwealth funding, indicates that WA’s grants have been cut in real terms this year. Our opponents opposite and their federal colleagues do not like talking about the total picture because it reveals the lie that the States are somehow rolling in extra money. Western Australia’s total commonwealth revenue will grow by only 0.9 per cent this year. If it kept pace with inflation and population growth, we would be $145 million better off. Overall, WA’s revenue this year from all sources is expected to grow by only 2.1 per cent, or less than the rate of inflation. The myth therefore of a GST bonanza is purely that - a myth. Federal members are too sheepish to tell their constituents what is happening. The Commonwealth is reaping a bonanza from income and company tax and its spending is going through the roof. An interesting paper was presented at the last Treasurers’ conference prepared by the Northern Territory Treasury. It indicated that commonwealth revenue and own-purpose expenses are expected to grow at a much faster rate than those of the States. Real growth in commonwealth own-purpose expenses has been funded through the retention of an increased share of commonwealth revenue. Specifically, the total share of national revenue provided for state purposes was forecast to decline from 42 per cent in 1998-99 to 39 per cent in 2005-06. The Commonwealth is earning more, keeping more and spending more; it does not know the meaning of expenditure restraint. I will provide some examples of what the Commonwealth is spending its money on. The 2003-04 federal budget shows that $9.5 million has been allocated to refurbish the Paris embassy apartments; nearly $5 million is to be spent rectifying defects in the Geneva chancery, which is only five years old; and another $5.9 million is to be spent on the Washington embassy, specifically and mainly the kitchen. No doubt this spending is important as those embassies must be in tip-top condition when commonwealth ministers retire and join the diplomatic cocktail party circuit. Those priorities are wrong. The States are being starved of funds for health, education and law and order. Those wrong priorities are revealed in John Howard’s budget papers.
An interesting paper was presented at the last Treasurers’ conference prepared by the Northern Territory Treasury. It indicated that commonwealth revenue and own-purpose expenses are expected to grow at a much faster rate than those of the States. Real growth in commonwealth own-purpose expenses has been funded through the retention of an increased share of commonwealth revenue. Specifically, the total share of national revenue provided for state purposes was forecast to decline from 42 per cent in 1998-99 to 39 per cent in 2005-06. The Commonwealth is earning more, keeping more and spending more; it does not know the meaning of expenditure restraint. I will provide some examples of what the Commonwealth is spending its money on. The 2003-04 federal budget shows that $9.5 million has been allocated to refurbish the Paris embassy apartments; nearly $5 million is to be spent rectifying defects in the Geneva chancery, which is only five years old; and another $5.9 million is to be spent on the Washington embassy, specifically and mainly the kitchen. No doubt this spending is important as those embassies must be in tip-top condition when commonwealth ministers retire and join the diplomatic cocktail party circuit. Those priorities are wrong. The States are being starved of funds for health, education and law and order. Those wrong priorities are revealed in John Howard’s budget papers.
Mr E.S. RIPPER replied: Mr Speaker, there is a very good old saying that there is no truth in advertising. The insert is, in fact, a paid political advertisement by the federal Liberal member for Moore. The insert states - It was expected to be several years before receipts from the GST would grow fast enough to overtake the Federal grants that the States would have received under the old arrangements. So the Commonwealth promised top-up payments in the meantime. But thanks to unexpectedly strong growth in GST collections, several States, including Western Australia, are expecting a bumper return in the next financial year. Mr Speaker, that federal member is wrong in several respects. The GST replaced not only federal grants but also state taxes that were given up as part of an intergovernmental agreement on taxation reform. Western Australia does not expect to receive any sustained or significant additional funding from the GST until around 2007-08. There is therefore no revenue bonanza from the GST. Only Queensland and the Northern Territory have so far ceased needing top-up budget balancing assistance. All up, about 40 per cent of Western Australia’s income is from commonwealth sources. It is our biggest source of income, greater than state taxes. However, the GST is only one component of those commonwealth grants. The total picture, taking into account all commonwealth funding, indicates that WA’s grants have been cut in real terms this year. Our opponents opposite and their federal colleagues do not like talking about the total picture because it reveals the lie that the States are somehow rolling in extra money. Western Australia’s total commonwealth revenue will grow by only 0.9 per cent this year. If it kept pace with inflation and population growth, we would be $145 million better off. Overall, WA’s revenue this year from all sources is expected to grow by only 2.1 per cent, or less than the rate of inflation. The myth therefore of a GST bonanza is purely that - a myth. Federal members are too sheepish to tell their constituents what is happening. The Commonwealth is reaping a bonanza from income and company tax and its spending is going through the roof. An interesting paper was presented at the last Treasurers’ conference prepared by the Northern Territory Treasury. It indicated that commonwealth revenue and own-purpose expenses are expected to grow at a much faster rate than those of the States. Real growth in commonwealth own-purpose expenses has been funded through the retention of an increased share of commonwealth revenue. Specifically, the total share of national revenue provided for state purposes was forecast to decline from 42 per cent in 1998-99 to 39 per cent in 2005-06. The Commonwealth is earning more, keeping more and spending more; it does not know the meaning of expenditure restraint. I will provide some examples of what the Commonwealth is spending its money on. The 2003-04 federal budget shows that $9.5 million has been allocated to refurbish the Paris embassy apartments; nearly $5 million is to be spent rectifying defects in the Geneva chancery, which is only five years old; and another $5.9 million is to be spent on the Washington embassy, specifically and mainly the kitchen. No doubt this spending is important as those embassies must be in tip-top condition when commonwealth ministers retire and join the diplomatic cocktail party circuit. Those priorities are wrong. The States are being starved of funds for health, education and law and order. Those wrong priorities are revealed in John Howard’s budget papers.
Mr Speaker, there is a very good old saying that there is no truth in advertising. The insert is, in fact, a paid political advertisement by the federal Liberal member for Moore. The insert states - It was expected to be several years before receipts from the GST would grow fast enough to overtake the Federal grants that the States would have received under the old arrangements. So the Commonwealth promised top-up payments in the meantime. But thanks to unexpectedly strong growth in GST collections, several States, including Western Australia, are expecting a bumper return in the next financial year. Mr Speaker, that federal member is wrong in several respects. The GST replaced not only federal grants but also state taxes that were given up as part of an intergovernmental agreement on taxation reform. Western Australia does not expect to receive any sustained or significant additional funding from the GST until around 2007-08. There is therefore no revenue bonanza from the GST. Only Queensland and the Northern Territory have so far ceased needing top-up budget balancing assistance. All up, about 40 per cent of Western Australia’s income is from commonwealth sources. It is our biggest source of income, greater than state taxes. However, the GST is only one component of those commonwealth grants. The total picture, taking into account all commonwealth funding, indicates that WA’s grants have been cut in real terms this year. Our opponents opposite and their federal colleagues do not like talking about the total picture because it reveals the lie that the States are somehow rolling in extra money. Western Australia’s total commonwealth revenue will grow by only 0.9 per cent this year. If it kept pace with inflation and population growth, we would be $145 million better off. Overall, WA’s revenue this year from all sources is expected to grow by only 2.1 per cent, or less than the rate of inflation. The myth therefore of a GST bonanza is purely that - a myth. Federal members are too sheepish to tell their constituents what is happening. The Commonwealth is reaping a bonanza from income and company tax and its spending is going through the roof. An interesting paper was presented at the last Treasurers’ conference prepared by the Northern Territory Treasury. It indicated that commonwealth revenue and own-purpose expenses are expected to grow at a much faster rate than those of the States. Real growth in commonwealth own-purpose expenses has been funded through the retention of an increased share of commonwealth revenue. Specifically, the total share of national revenue provided for state purposes was forecast to decline from 42 per cent in 1998-99 to 39 per cent in 2005-06. The Commonwealth is earning more, keeping more and spending more; it does not know the meaning of expenditure restraint. I will provide some examples of what the Commonwealth is spending its money on. The 2003-04 federal budget shows that $9.5 million has been allocated to refurbish the Paris embassy apartments; nearly $5 million is to be spent rectifying defects in the Geneva chancery, which is only five years old; and another $5.9 million is to be spent on the Washington embassy, specifically and mainly the kitchen. No doubt this spending is important as those embassies must be in tip-top condition when commonwealth ministers retire and join the diplomatic cocktail party circuit. Those priorities are wrong. The States are being starved of funds for health, education and law and order. Those wrong priorities are revealed in John Howard’s budget papers.
The total picture, taking into account all commonwealth funding, indicates that WA’s grants have been cut in real terms this year. Our opponents opposite and their federal colleagues do not like talking about the total picture because it reveals the lie that the States are somehow rolling in extra money. Western Australia’s total commonwealth revenue will grow by only 0.9 per cent this year. If it kept pace with inflation and population growth, we would be $145 million better off. Overall, WA’s revenue this year from all sources is expected to grow by only 2.1 per cent, or less than the rate of inflation. The myth therefore of a GST bonanza is purely that - a myth. Federal members are too sheepish to tell their constituents what is happening. The Commonwealth is reaping a bonanza from income and company tax and its spending is going through the roof. An interesting paper was presented at the last Treasurers’ conference prepared by the Northern Territory Treasury. It indicated that commonwealth revenue and own-purpose expenses are expected to grow at a much faster rate than those of the States. Real growth in commonwealth own-purpose expenses has been funded through the retention of an increased share of commonwealth revenue. Specifically, the total share of national revenue provided for state purposes was forecast to decline from 42 per cent in 1998-99 to 39 per cent in 2005-06. The Commonwealth is earning more, keeping more and spending more; it does not know the meaning of expenditure restraint. I will provide some examples of what the Commonwealth is spending its money on. The 2003-04 federal budget shows that $9.5 million has been allocated to refurbish the Paris embassy apartments; nearly $5 million is to be spent rectifying defects in the Geneva chancery, which is only five years old; and another $5.9 million is to be spent on the Washington embassy, specifically and mainly the kitchen. No doubt this spending is important as those embassies must be in tip-top condition when commonwealth ministers retire and join the diplomatic cocktail party circuit. Those priorities are wrong. The States are being starved of funds for health, education and law and order. Those wrong priorities are revealed in John Howard’s budget papers.
An interesting paper was presented at the last Treasurers’ conference prepared by the Northern Territory Treasury. It indicated that commonwealth revenue and own-purpose expenses are expected to grow at a much faster rate than those of the States. Real growth in commonwealth own-purpose expenses has been funded through the retention of an increased share of commonwealth revenue. Specifically, the total share of national revenue provided for state purposes was forecast to decline from 42 per cent in 1998-99 to 39 per cent in 2005-06. The Commonwealth is earning more, keeping more and spending more; it does not know the meaning of expenditure restraint. I will provide some examples of what the Commonwealth is spending its money on. The 2003-04 federal budget shows that $9.5 million has been allocated to refurbish the Paris embassy apartments; nearly $5 million is to be spent rectifying defects in the Geneva chancery, which is only five years old; and another $5.9 million is to be spent on the Washington embassy, specifically and mainly the kitchen. No doubt this spending is important as those embassies must be in tip-top condition when commonwealth ministers retire and join the diplomatic cocktail party circuit. Those priorities are wrong. The States are being starved of funds for health, education and law and order. Those wrong priorities are revealed in John Howard’s budget papers.
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