I'm Australian first and foremost and looking at as Australian it just makes sense to let Perth and WA prosper, the city that links to Asia, oil and gas, iron ore centre. it's stupid to r3tard WAs growth and prosperity to compete with KL etc
GST
- Thread starter tandino
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How did Tasmania ever cope before the GST was added ten years ago?
The GST was brought in to replace state taxes so should be distributed on a per capita basis.
The federal government has plenty of revenue to distribute to Tasmania.
The GST was brought in to replace state taxes so should be distributed on a per capita basis.
The federal government has plenty of revenue to distribute to Tasmania.
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The whole GST distribution is done based on what the government thinks is best needed to help it win the next election. WA is getting raped because there aren't that many seats there to lose either way. Victoria leans to the left these days and as such Abbott could give a toss and will continue to screw them. NSW gets a good deal, Queensland is laughing at the other major states because they win out of it, whilst Tassie & NT need the boost otherwise they would end up bankrupt.
- Moderator
- #429
special grants. our federation has always helped the smaller states with keeping up with the bigger 2. WA should know all about it, being a weaker state for a long part of its history. one day, the NT could boom and pay money, just like WA. this money will help allow that to happen. its how most federations should work. it is fair to expect that every Australia has access to the same amount of services, regardless of which state u live.
and WA werent complaining when NSW was funding the rest of the country through GST. this is why it is a bit rich that now the tables have turned, u want it changed to per capita. u agreed to the deal in 1999 and didnt even raise a concern back in 2006 when NSW was complaining that u were receiving GST. WA agreed with the deal, deal with it.
is the system perfect, no. it will never be. How much and how far should we strive to achieve this aim. are we punishing performing states too harshly. It is the best method we have come up with yet; that is a tax for the states, which is divided to help the achieve Horizontal Fiscal Equalisation, or each state being equitable. being independent prevents politics from interfering(which is the flaw when u get the Fed involved)
as i said before, im not against WA receiving a special grant due to the downturn. but im against changing the GST formula to suit one states agenda for one year. any improvement of the GST formula should be done after careful research and consultation, not willy nilly.
- Moderator
- #430
its independent to try and prevent that from happening. it has nothing to do with the next election, and rightly so as that always brings about bad governance. all terms of reference are clearly available to find and the formula takes into account lots of different factors(some say too much) reviews are taken by the treasurer every 5 year or so, with a clear terms of reference.
please take off your tin foil hat.
The GST isn't actually the major issue. The issue is that entire tax system is an attempt at a halfway house between federalism and centralism, and it doesn't really do either.
That does not mean that the current distribution of GST is right, though.
That does not mean that the current distribution of GST is right, though.
Xsess
Norm Smith Medallist
Wrong on every count. WA didn't "agree" with the deal it was forced on us at a time when every state had a Labour govt except WA.. getit. And the bullshit about us being a historical net federation reciever has been roundly debunked;
The West Australian 14 Oct 2014:
Treasurer Mike Nahan has declared that WA’s historic debt to the other States for fiscal equalisation has been more than paid back with interest. New figures from WA Treasury also reveal that more than $8200 per West Australian a year goes to other States and Territories. Dr Nahan told The West Australian that arguments by other States that WA had been propped up in past years were ignorant of the Federation’s history. He said WA originally received equalisation funds because Australia’s tariff wall protected manufacturing in the Eastern States at the expense of WA’s agricultural export-oriented economy, harming WA living standards.
WA Treasury’s annual analysis of redistributions under various Federal policies – not just the GST but also income, company and other taxes and all Commonwealth expenditure – reveals WA contributed $51.8 billion to the Commonwealth. It got back only $31.4 billion in 2012-13, effectively a subsidy of $20.4 billion for the rest of the nation. That figure has grown 25 per cent in the past two years.
WA’s contribution to the Federation in 2012-13 was 10 times that of the only other “donor” State, NSW ($2 billion), and more than 30 times more than NSW on a per capita basis ($8237 per West Australian to $268 per NSW resident). Net beneficiaries were Victoria ($46 per person), Queensland ($1567), South Australia ($3974), Tasmania ($8683) and Northern Territory ($16,146).
Treasury said the inequity was from high levels of company, income and mineral extraction taxes from WA, its low draw on Federal social security and health payments, low Commonwealth spending on services in WA and the falling share of the GST. Leaders of other States, including Tasmanian Premier Will Hodgman, have argued the GST system should not be changed because it was not long ago that WA was a net GST beneficiary. But Dr Nahan said WA had paid back much more than it had received, contributing $8.2 billion more than it got back in GST and the forerunner Commonwealth grants over the past three decades.
This rose to $152 billion when adding all revenue and expenditure in the same period. Dr Nahan said to say WA was propped up for years was wrong. “Tariffs were effectively a tax on exports and we had to buy expensive cars, whitegoods, tractors, you name it, to protect (Eastern States) industry,” he said. “Then, in the 70s and 80s, all the heads of the mining companies were based in Melbourne but there was no mining activity. They didn’t want us to compete for all that payroll tax … so they agreed to compensate us. You add it up, we have been a net contributor. We’ve more than paid back all the compensation we received since the tariff wall started falling in the mid-80s.”
Yeah WA got over a few extra cents for dollars for a few years.
It seems ridiculous that this system discourages investing in industry.
Basically the CGC wants to force WA into introducing pokies everywhere.
If WA shut down some mines, we'd probably be better off whilst the commonwealth as a whole would be worse off.
Upgrayedd
A Vote for Clive is a Vote for Justice
We can all agree on barnett failing.
Remember when NSW moaned on the fact they were only getting 10 billion back with paying 13 billion? we'ld take that in an instant.
The system right now and the revenue distribution will absolutly gut w.a. right now. The may budget will already be harsh with the downturn in royaltys but a gst revenue CUT will be cutting off one of australias freaking states which can walk on its own currently
The federal carrot is privatise water/power which would skyrocket the price due to lack of competitiveness and isolation and bring in gambling reform. Both horrid things
Remember when NSW moaned on the fact they were only getting 10 billion back with paying 13 billion? we'ld take that in an instant.
The system right now and the revenue distribution will absolutly gut w.a. right now. The may budget will already be harsh with the downturn in royaltys but a gst revenue CUT will be cutting off one of australias freaking states which can walk on its own currently
The federal carrot is privatise water/power which would skyrocket the price due to lack of competitiveness and isolation and bring in gambling reform. Both horrid things
- Moderator
- #435
u sign the deal, u agreed with the deal. you signed up to the deal to divide GST based on the Horizontal Fiscal Equalisation(HFE) to try and keep the states on the some budget strength. no where does it say u were forced into it. all states agreed.
and the conspiracy you make makes no sense with no evidence. u didnt even sign saying u were against GST in the document(like NSW VIC and Tas).
forced into it like u were forced into the federation itself???? WA sure gets bullied around a bit.
it doesnt matter about how much u got, or how much NSW had to pay. if u had concerns about the system then, u didnt voice them. it just makes WA whole argument weaker. of course, hindsight is fantastic but the fact that every state went against u, even the normal donor ones like NSW this time, is an indication of a failure to communicate the real issues of the GST carve up. that issue being how much emphasis should the HFE have on the carve up, which NSW and VIC have been consistent about.
At the time it was put together, no State dreamed they would ever go below 70c in the dollar returned, let alone going below 30!
Anyway, it's interesting that mining revenue is 100% included in the equations of who needs what, but gambling revenue is 100% excluded.
Anyway, it's interesting that mining revenue is 100% included in the equations of who needs what, but gambling revenue is 100% excluded.
I see people would rather moan as simple minded little colonials. The problem is this stupid state v state mentality.
The Fed gument tried to force the power thing on Tassie but its the same here, lack of competition would kill us. Other states have gone down the gambling path. Bloody poker machines.
We were doing well with renewable energy here but Abbott has killed that off.
I think Barnett should show us the budget situation. Just complaining is only going to get local support. Showing the budget expenditure & deficit would get more understanding & support I would think.
The Fed gument tried to force the power thing on Tassie but its the same here, lack of competition would kill us. Other states have gone down the gambling path. Bloody poker machines.
We were doing well with renewable energy here but Abbott has killed that off.
I think Barnett should show us the budget situation. Just complaining is only going to get local support. Showing the budget expenditure & deficit would get more understanding & support I would think.
Actually....Tasmania has the highest Household Expenditure Measurement in the country.
Power Raid
We Exist To Win Premierships
But tassie is blessed with amazing resource assets? Surely if tassie wasn't a scab state it wouldn't actively shut down industry, projects and jobs?
How can a state put its hand out knowing it hasn't tried to stand on its own two feet?
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******* Greenies with their hands out!
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So why was the agreement reached over NSW after so much lobbying? Nothing that has anything to do with Canberra that is so politically sensitive is ever independent despite comments to say otherwise by politicians.
Getting rid of the states would just increase the number of parties fighting over the cash.
Having a state system is genuinely the best way of providing services.
Power Raid
We Exist To Win Premierships
unless of course one thinks the pink bat scheme was a better model for rolling out services
You really do write from a bitter twisted & ignorant perspective. Just lashing out like the WA Premier doesnt do your argument any good.
Well clearly the WA Premier didnt figure it out when he had all his Billions in royalties to play with. Obviously Not much long term planning was done to cope with a fall in the price of dirt that was clearly going to happen at some time.
Surely they can take a bit more gold out of Kalgoorlie to support the WA State Liberal Gument?
Power Raid
We Exist To Win Premierships
no one is asking for all the contribute equally but the law requires everyone to try
do you really think Tassie and SA couldn't preform better?
I sense your the one bitter and twisted, given the embarrassingly jealous tone in your post
- Moderator
- #447
it was much tougher when the exchange rate was appreciating rapidly due to a certain states mining boom.
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Well done son, you added so much to the conversation.
SA have a mass of Uranium that has been left used due to national politics. The car industry has been killed by Abbott.
Tas has always had problems with the cost of exporting through the expensive Port of Melbourne. The $A going over parity has really hit our economy. Just look at Caterpillar in Burnie. It is slowly starting to recover but the rip off in export costs still hurts. We get ripped off with poor & expensive internet services. Some talk of linking into a new international cable going south of the island might force some competition. Tassie forests, like SA uranium is controlled by national politics.
So maybe look at the position of other places before you foam up.
