Hon. Norman Moore asks whether the Commonwealth budget will deliver higher revenue to WA than anticipated. Hon. Kate Doust responds that it appears likely, but not quantifiable yet, with some specific areas of impact outlined.

AnsweredQoN 452Legislative Council
Asked
14 May 2008
Portfolio
parliamentary secretary representing the Treasurer

QuestionView source ↗

FEDERAL BUDGET — STATE REVENUE
I refer to the Treasurer to the commonwealth budget that was released yesterday. (1) Will the Treasurer indicate whether that budget will deliver higher revenue flows to the state government than are anticipated in the state budget that was handed down last week? (2) If so, will the Treasurer outline the major items for which the government will receive more revenue than expected? Hon KATE DOUST

AnswerView source ↗

I thank the member for some notice of this question. (1)-(2) Overall, the commonwealth budget appears likely to deliver either additional funding or opportunities for additional funding to Western Australia over the budget and forward estimates period, although it is not quantifiable at this stage. The estimates of total goods and services tax revenue in the commonwealth budget for the budget and forward estimates period are consistent with Western Australia’s budget forecasts. Compensation will be paid to Western Australia for the negative impact on North West Shelf royalties flowing from the removal of the crude oil excise exemption for “condensate”, with a net benefit to Western Australia of $70 million over the budget and forward estimates period. Specific-purpose payment revenues are broadly in line with our budget forecasts, but this is a complex area to analyse. For example, there are additional commonwealth payments for the Perth-Bunbury highway and the Harvey Water piping project in 2007-08 and early in the budget period, but these have been brought forward from later in the budget period. During the coming months there will also be opportunities for states to negotiate on the base funding level and growth of the new specific-purpose payments and new national partnership payments, as part of the major reforms in this area to be implemented from 1 January 2009. The commonwealth has guaranteed that states will be no worse off from these reforms, and additional money may be available. The commonwealth has abolished corporations payments to the states relating to the transfer of companies regulation to the commonwealth in 1991. Although this involves a loss to Western Australia of around $18 million per annum, the Department of Treasury and Finance believes that this should be offset by increases in other specific-purpose payments, in line with the commonwealth’s guarantee that the states will be no worse off. A proportion of the new funds established by the commonwealth—the Building Australia Fund, the Health and Hospitals Fund and the Education Investment Fund—is expected to be made available to the states from 2009-10 through the Council of Australian Governments process. Although the commonwealth budget has not allocated any expenditure from these funds, the budget papers note that the contingency reserve includes a provision for anticipated expenditure from the new funds. A fuller assessment will be reflected in the state budget midyear review.
(1) Will the Treasurer indicate whether that budget will deliver higher revenue flows to the state government than are anticipated in the state budget that was handed down last week? (2) If so, will the Treasurer outline the major items for which the government will receive more revenue than expected? Hon KATE DOUST replied: I thank the member for some notice of this question. (1)-(2) Overall, the commonwealth budget appears likely to deliver either additional funding or opportunities for additional funding to Western Australia over the budget and forward estimates period, although it is not quantifiable at this stage. The estimates of total goods and services tax revenue in the commonwealth budget for the budget and forward estimates period are consistent with Western Australia’s budget forecasts. Compensation will be paid to Western Australia for the negative impact on North West Shelf royalties flowing from the removal of the crude oil excise exemption for “condensate”, with a net benefit to Western Australia of $70 million over the budget and forward estimates period. Specific-purpose payment revenues are broadly in line with our budget forecasts, but this is a complex area to analyse. For example, there are additional commonwealth payments for the Perth-Bunbury highway and the Harvey Water piping project in 2007-08 and early in the budget period, but these have been brought forward from later in the budget period. During the coming months there will also be opportunities for states to negotiate on the base funding level and growth of the new specific-purpose payments and new national partnership payments, as part of the major reforms in this area to be implemented from 1 January 2009. The commonwealth has guaranteed that states will be no worse off from these reforms, and additional money may be available. The commonwealth has abolished corporations payments to the states relating to the transfer of companies regulation to the commonwealth in 1991. Although this involves a loss to Western Australia of around $18 million per annum, the Department of Treasury and Finance believes that this should be offset by increases in other specific-purpose payments, in line with the commonwealth’s guarantee that the states will be no worse off. A proportion of the new funds established by the commonwealth—the Building Australia Fund, the Health and Hospitals Fund and the Education Investment Fund—is expected to be made available to the states from 2009-10 through the Council of Australian Governments process. Although the commonwealth budget has not allocated any expenditure from these funds, the budget papers note that the contingency reserve includes a provision for anticipated expenditure from the new funds. A fuller assessment will be reflected in the state budget midyear review.
(2) If so, will the Treasurer outline the major items for which the government will receive more revenue than expected? Hon KATE DOUST replied: I thank the member for some notice of this question. (1)-(2) Overall, the commonwealth budget appears likely to deliver either additional funding or opportunities for additional funding to Western Australia over the budget and forward estimates period, although it is not quantifiable at this stage. The estimates of total goods and services tax revenue in the commonwealth budget for the budget and forward estimates period are consistent with Western Australia’s budget forecasts. Compensation will be paid to Western Australia for the negative impact on North West Shelf royalties flowing from the removal of the crude oil excise exemption for “condensate”, with a net benefit to Western Australia of $70 million over the budget and forward estimates period. Specific-purpose payment revenues are broadly in line with our budget forecasts, but this is a complex area to analyse. For example, there are additional commonwealth payments for the Perth-Bunbury highway and the Harvey Water piping project in 2007-08 and early in the budget period, but these have been brought forward from later in the budget period. During the coming months there will also be opportunities for states to negotiate on the base funding level and growth of the new specific-purpose payments and new national partnership payments, as part of the major reforms in this area to be implemented from 1 January 2009. The commonwealth has guaranteed that states will be no worse off from these reforms, and additional money may be available. The commonwealth has abolished corporations payments to the states relating to the transfer of companies regulation to the commonwealth in 1991. Although this involves a loss to Western Australia of around $18 million per annum, the Department of Treasury and Finance believes that this should be offset by increases in other specific-purpose payments, in line with the commonwealth’s guarantee that the states will be no worse off. A proportion of the new funds established by the commonwealth—the Building Australia Fund, the Health and Hospitals Fund and the Education Investment Fund—is expected to be made available to the states from 2009-10 through the Council of Australian Governments process. Although the commonwealth budget has not allocated any expenditure from these funds, the budget papers note that the contingency reserve includes a provision for anticipated expenditure from the new funds. A fuller assessment will be reflected in the state budget midyear review.
Hon KATE DOUST replied: I thank the member for some notice of this question. (1)-(2) Overall, the commonwealth budget appears likely to deliver either additional funding or opportunities for additional funding to Western Australia over the budget and forward estimates period, although it is not quantifiable at this stage. The estimates of total goods and services tax revenue in the commonwealth budget for the budget and forward estimates period are consistent with Western Australia’s budget forecasts. Compensation will be paid to Western Australia for the negative impact on North West Shelf royalties flowing from the removal of the crude oil excise exemption for “condensate”, with a net benefit to Western Australia of $70 million over the budget and forward estimates period. Specific-purpose payment revenues are broadly in line with our budget forecasts, but this is a complex area to analyse. For example, there are additional commonwealth payments for the Perth-Bunbury highway and the Harvey Water piping project in 2007-08 and early in the budget period, but these have been brought forward from later in the budget period. During the coming months there will also be opportunities for states to negotiate on the base funding level and growth of the new specific-purpose payments and new national partnership payments, as part of the major reforms in this area to be implemented from 1 January 2009. The commonwealth has guaranteed that states will be no worse off from these reforms, and additional money may be available. The commonwealth has abolished corporations payments to the states relating to the transfer of companies regulation to the commonwealth in 1991. Although this involves a loss to Western Australia of around $18 million per annum, the Department of Treasury and Finance believes that this should be offset by increases in other specific-purpose payments, in line with the commonwealth’s guarantee that the states will be no worse off. A proportion of the new funds established by the commonwealth—the Building Australia Fund, the Health and Hospitals Fund and the Education Investment Fund—is expected to be made available to the states from 2009-10 through the Council of Australian Governments process. Although the commonwealth budget has not allocated any expenditure from these funds, the budget papers note that the contingency reserve includes a provision for anticipated expenditure from the new funds. A fuller assessment will be reflected in the state budget midyear review.
I thank the member for some notice of this question. (1)-(2) Overall, the commonwealth budget appears likely to deliver either additional funding or opportunities for additional funding to Western Australia over the budget and forward estimates period, although it is not quantifiable at this stage. The estimates of total goods and services tax revenue in the commonwealth budget for the budget and forward estimates period are consistent with Western Australia’s budget forecasts. Compensation will be paid to Western Australia for the negative impact on North West Shelf royalties flowing from the removal of the crude oil excise exemption for “condensate”, with a net benefit to Western Australia of $70 million over the budget and forward estimates period. Specific-purpose payment revenues are broadly in line with our budget forecasts, but this is a complex area to analyse. For example, there are additional commonwealth payments for the Perth-Bunbury highway and the Harvey Water piping project in 2007-08 and early in the budget period, but these have been brought forward from later in the budget period. During the coming months there will also be opportunities for states to negotiate on the base funding level and growth of the new specific-purpose payments and new national partnership payments, as part of the major reforms in this area to be implemented from 1 January 2009. The commonwealth has guaranteed that states will be no worse off from these reforms, and additional money may be available. The commonwealth has abolished corporations payments to the states relating to the transfer of companies regulation to the commonwealth in 1991. Although this involves a loss to Western Australia of around $18 million per annum, the Department of Treasury and Finance believes that this should be offset by increases in other specific-purpose payments, in line with the commonwealth’s guarantee that the states will be no worse off. A proportion of the new funds established by the commonwealth—the Building Australia Fund, the Health and Hospitals Fund and the Education Investment Fund—is expected to be made available to the states from 2009-10 through the Council of Australian Governments process. Although the commonwealth budget has not allocated any expenditure from these funds, the budget papers note that the contingency reserve includes a provision for anticipated expenditure from the new funds. A fuller assessment will be reflected in the state budget midyear review.
(1)-(2) Overall, the commonwealth budget appears likely to deliver either additional funding or opportunities for additional funding to Western Australia over the budget and forward estimates period, although it is not quantifiable at this stage. The estimates of total goods and services tax revenue in the commonwealth budget for the budget and forward estimates period are consistent with Western Australia’s budget forecasts. Compensation will be paid to Western Australia for the negative impact on North West Shelf royalties flowing from the removal of the crude oil excise exemption for “condensate”, with a net benefit to Western Australia of $70 million over the budget and forward estimates period. Specific-purpose payment revenues are broadly in line with our budget forecasts, but this is a complex area to analyse. For example, there are additional commonwealth payments for the Perth-Bunbury highway and the Harvey Water piping project in 2007-08 and early in the budget period, but these have been brought forward from later in the budget period. During the coming months there will also be opportunities for states to negotiate on the base funding level and growth of the new specific-purpose payments and new national partnership payments, as part of the major reforms in this area to be implemented from 1 January 2009. The commonwealth has guaranteed that states will be no worse off from these reforms, and additional money may be available. The commonwealth has abolished corporations payments to the states relating to the transfer of companies regulation to the commonwealth in 1991. Although this involves a loss to Western Australia of around $18 million per annum, the Department of Treasury and Finance believes that this should be offset by increases in other specific-purpose payments, in line with the commonwealth’s guarantee that the states will be no worse off. A proportion of the new funds established by the commonwealth—the Building Australia Fund, the Health and Hospitals Fund and the Education Investment Fund—is expected to be made available to the states from 2009-10 through the Council of Australian Governments process. Although the commonwealth budget has not allocated any expenditure from these funds, the budget papers note that the contingency reserve includes a provision for anticipated expenditure from the new funds. A fuller assessment will be reflected in the state budget midyear review.

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