The Minister for Planning and Infrastructure addresses the impact of the GST on WA road funding, highlighting a significant revenue shortfall from motor vehicle registrations and criticising the federal government's growth dividend projections.

AnsweredQoN 304Legislative Assembly
Asked
28 August 2001
Portfolio
Planning and Infrastructure

QuestionView source ↗

goods and services tax , ROAD FUNDING 304. Mr TEMPLEMAN to the Minister for Planning and Infrastructure: Can the minister advise the House of the impact of the goods and services tax on road funding in Western Australia? Ms MacTIERNAN

AnswerView source ↗

I thank the member for the question. As we all know, the goods and services tax has comprehensively mugged the economy throughout 2000-01; and what has happened to motor vehicle registrations and the associated revenue is just one example of this assault. As a result of the GST, the actual revenue from motor vehicle licence fees for 2000-01 was $238 million-plus against a budget estimate of $249 million-plus, a difference of over $11 million. As members know, the revenue from motor vehicle registrations is hypothecated by law directly into road funding. Therefore, any drop in revenue from motor vehicle registrations will result in a drop in road funding. The result for the next four years is rather alarming, because the revenue from motor vehicle registrations will drop by around $66 million. The Department of Transport has identified that one of the key reasons for this drop is the introduction of the GST, because it has had a substantial impact on the number of vehicles entering the Western Australian vehicle fleet. Therefore, as a result of the GST, we have lost around $66 million from our road funding budget. Today, the Treasurer talked about the non-existence of the growth dividend. It is alarming that Western Australia is being penalised to the tune of $71.8 million over four years because the federal Government claims that its modelling indicates that WA will receive an economic boost from the GST. However, as I have set out today, there is no such boost. In fact, we have clear evidence that WA has lost $66 million in motor vehicle licence fees, in addition to the $71.8 million that it will lose because of the false growth dividend. Therefore, when people around the State approach members to ask where their roads are, I suggest they refer them to the coalition and Mr Howard and explain that Howard’s GST has caused us to lose around $66 million from road funding.
goods and services tax , ROAD FUNDING
Can the minister advise the House of the impact of the goods and services tax on road funding in Western Australia? Ms MacTIERNAN replied: I thank the member for the question. As we all know, the goods and services tax has comprehensively mugged the economy throughout 2000-01; and what has happened to motor vehicle registrations and the associated revenue is just one example of this assault. As a result of the GST, the actual revenue from motor vehicle licence fees for 2000-01 was $238 million-plus against a budget estimate of $249 million-plus, a difference of over $11 million. As members know, the revenue from motor vehicle registrations is hypothecated by law directly into road funding. Therefore, any drop in revenue from motor vehicle registrations will result in a drop in road funding. The result for the next four years is rather alarming, because the revenue from motor vehicle registrations will drop by around $66 million. The Department of Transport has identified that one of the key reasons for this drop is the introduction of the GST, because it has had a substantial impact on the number of vehicles entering the Western Australian vehicle fleet. Therefore, as a result of the GST, we have lost around $66 million from our road funding budget. Today, the Treasurer talked about the non-existence of the growth dividend. It is alarming that Western Australia is being penalised to the tune of $71.8 million over four years because the federal Government claims that its modelling indicates that WA will receive an economic boost from the GST. However, as I have set out today, there is no such boost. In fact, we have clear evidence that WA has lost $66 million in motor vehicle licence fees, in addition to the $71.8 million that it will lose because of the false growth dividend. Therefore, when people around the State approach members to ask where their roads are, I suggest they refer them to the coalition and Mr Howard and explain that Howard’s GST has caused us to lose around $66 million from road funding.
Ms MacTIERNAN replied: I thank the member for the question. As we all know, the goods and services tax has comprehensively mugged the economy throughout 2000-01; and what has happened to motor vehicle registrations and the associated revenue is just one example of this assault. As a result of the GST, the actual revenue from motor vehicle licence fees for 2000-01 was $238 million-plus against a budget estimate of $249 million-plus, a difference of over $11 million. As members know, the revenue from motor vehicle registrations is hypothecated by law directly into road funding. Therefore, any drop in revenue from motor vehicle registrations will result in a drop in road funding. The result for the next four years is rather alarming, because the revenue from motor vehicle registrations will drop by around $66 million. The Department of Transport has identified that one of the key reasons for this drop is the introduction of the GST, because it has had a substantial impact on the number of vehicles entering the Western Australian vehicle fleet. Therefore, as a result of the GST, we have lost around $66 million from our road funding budget. Today, the Treasurer talked about the non-existence of the growth dividend. It is alarming that Western Australia is being penalised to the tune of $71.8 million over four years because the federal Government claims that its modelling indicates that WA will receive an economic boost from the GST. However, as I have set out today, there is no such boost. In fact, we have clear evidence that WA has lost $66 million in motor vehicle licence fees, in addition to the $71.8 million that it will lose because of the false growth dividend. Therefore, when people around the State approach members to ask where their roads are, I suggest they refer them to the coalition and Mr Howard and explain that Howard’s GST has caused us to lose around $66 million from road funding.
I thank the member for the question. As we all know, the goods and services tax has comprehensively mugged the economy throughout 2000-01; and what has happened to motor vehicle registrations and the associated revenue is just one example of this assault. As a result of the GST, the actual revenue from motor vehicle licence fees for 2000-01 was $238 million-plus against a budget estimate of $249 million-plus, a difference of over $11 million. As members know, the revenue from motor vehicle registrations is hypothecated by law directly into road funding. Therefore, any drop in revenue from motor vehicle registrations will result in a drop in road funding. The result for the next four years is rather alarming, because the revenue from motor vehicle registrations will drop by around $66 million. The Department of Transport has identified that one of the key reasons for this drop is the introduction of the GST, because it has had a substantial impact on the number of vehicles entering the Western Australian vehicle fleet. Therefore, as a result of the GST, we have lost around $66 million from our road funding budget. Today, the Treasurer talked about the non-existence of the growth dividend. It is alarming that Western Australia is being penalised to the tune of $71.8 million over four years because the federal Government claims that its modelling indicates that WA will receive an economic boost from the GST. However, as I have set out today, there is no such boost. In fact, we have clear evidence that WA has lost $66 million in motor vehicle licence fees, in addition to the $71.8 million that it will lose because of the false growth dividend. Therefore, when people around the State approach members to ask where their roads are, I suggest they refer them to the coalition and Mr Howard and explain that Howard’s GST has caused us to lose around $66 million from road funding.
Today, the Treasurer talked about the non-existence of the growth dividend. It is alarming that Western Australia is being penalised to the tune of $71.8 million over four years because the federal Government claims that its modelling indicates that WA will receive an economic boost from the GST. However, as I have set out today, there is no such boost. In fact, we have clear evidence that WA has lost $66 million in motor vehicle licence fees, in addition to the $71.8 million that it will lose because of the false growth dividend. Therefore, when people around the State approach members to ask where their roads are, I suggest they refer them to the coalition and Mr Howard and explain that Howard’s GST has caused us to lose around $66 million from road funding.

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