❓ Hon Ed Dermer questions the Treasurer regarding WA's royalty income for 2007-08 and its impact on Commonwealth grants. The Treasurer provides revised figures and estimates future grant reductions due to royalty income.
AnsweredQoN 193Legislative Council
QuestionView source ↗
(1) Does $1 714 billion remain the most accurate available figure for the Western Australian Government royalty income for the 2007-08 financial year?
(2) If no to (1), what is the most accurate available figure for the Western Australian Government royalty income for the 2007-08 financial year?
(3) What is the Treasurer’s best available estimate of the reduction in Commonwealth Government grants to the Western Australian Government that will result as a consequence of the royalty income received by the Western Australian Government in the 2007-08 financial year?
(4) What is the most accurate available figure for the impact of this reduction on the revenue received by the Western Australian Government in the 2007-08 financial year?
(5) What is the Treasurer’s best available estimate of the impact of the reduction referred to in (3), on the revenue to be received by the Western Australian Government in each of the following financial years, -
(a) 2008-09;
(b) 2009-10;
(c) 2010-11;
(d) 2011-12;
(e) 2012-13;
(f) 2013-14; and
(g) 2014-15?
(2) If no to (1), what is the most accurate available figure for the Western Australian Government royalty income for the 2007-08 financial year?
(3) What is the Treasurer’s best available estimate of the reduction in Commonwealth Government grants to the Western Australian Government that will result as a consequence of the royalty income received by the Western Australian Government in the 2007-08 financial year?
(4) What is the most accurate available figure for the impact of this reduction on the revenue received by the Western Australian Government in the 2007-08 financial year?
(5) What is the Treasurer’s best available estimate of the impact of the reduction referred to in (3), on the revenue to be received by the Western Australian Government in each of the following financial years, -
(a) 2008-09;
(b) 2009-10;
(c) 2010-11;
(d) 2011-12;
(e) 2012-13;
(f) 2013-14; and
(g) 2014-15?
AnswerView source ↗
Answered
16 March 2009
Responded by
Parliamentary Secretary representing the Treasurer
Response time
103 days
(1) No.
(2) The
2007?08 Annual Report on State Finances
, released on 25 September 2008, revised the $1.714 billion estimate published in the
Pre-election Financial Projections Statement
to $1.680 billion.
(3) The Department of Treasury and Finance estimates that Western Australia will effectively lose around 60% or $1.0 billion of the on?shore royalty revenue received in 2007?08 through lagged reductions in the State's share of national GST revenue. The loss is around 90% for off-shore royalties received from the North West Shelf venture.
(4) This loss is measured in 2007?08 net present value terms. The actual losses occur with a time lag, as the Commonwealth Grants Commission's assessments are based on a rolling average of five years' data. For example, GST grants in 2007?08 reflected States' average circumstances in the period 2001?02 to 2005?06. Therefore, the 2007?08 on?shore royalty income had no impact on the State's GST grants in 2007?08.
(5) The estimated GST grant reductions due to 2007?08 on?shore royalties are as follows:
(a) nil;
(b) $230 million;
(c) $245 million;
(d) $260 million;
(e) $275 million;
(f) $290 million; and
(g) nil.
The annual grant reductions grow over the five years, as they are escalated for growth in the GST pool as well as growth in Western Australia's share of the population.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
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(2) The
2007?08 Annual Report on State Finances
, released on 25 September 2008, revised the $1.714 billion estimate published in the
Pre-election Financial Projections Statement
to $1.680 billion.
(3) The Department of Treasury and Finance estimates that Western Australia will effectively lose around 60% or $1.0 billion of the on?shore royalty revenue received in 2007?08 through lagged reductions in the State's share of national GST revenue. The loss is around 90% for off-shore royalties received from the North West Shelf venture.
(4) This loss is measured in 2007?08 net present value terms. The actual losses occur with a time lag, as the Commonwealth Grants Commission's assessments are based on a rolling average of five years' data. For example, GST grants in 2007?08 reflected States' average circumstances in the period 2001?02 to 2005?06. Therefore, the 2007?08 on?shore royalty income had no impact on the State's GST grants in 2007?08.
(5) The estimated GST grant reductions due to 2007?08 on?shore royalties are as follows:
(a) nil;
(b) $230 million;
(c) $245 million;
(d) $260 million;
(e) $275 million;
(f) $290 million; and
(g) nil.
The annual grant reductions grow over the five years, as they are escalated for growth in the GST pool as well as growth in Western Australia's share of the population.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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