The GST carve up

Discussion in 'Australian Politics' started by stormee, Feb 25, 2012.

Put it out there
  1. DaftPunk

    DaftPunk Team Captain

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    They flat out rejected any notion of floor rates and per capita distribution. Held up the standing theory of services equalization. So really, they aren't going to change it a great deal at all.
     

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  2. Max zero

    Max zero Premium Platinum

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    http://news.ninemsn.com.au/article.aspx?id=8456093

    That was about the only thing that was rejected from WA. The report recognizes that in the medium term WA's GST share could drop to zero and that is a problem. If the report's recommendation that no state should lose GST revenue in absolute terms year to year was implemented WA would of gotten an extra $600 million already.

    http://news.ninemsn.com.au/national/8456089/swan-releases-interim-gst-review

    So far it seems the report agrees with the resource rich states on the majority of their complaints.

    The final bolded part makes me laugh. How are we going to set aside some GST revenue for infrastructure if the government gives us ZERO (as forecasted in the future)?

    There is a loser here but it ain't WA. There is a reason Barnett is cautiously optimistic and the Tasmania and SA government have already started to whine.
     
  3. DaftPunk

    DaftPunk Team Captain

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    http://m.theaustralian.com.au/natio...n-bid-to-fix-gst/story-fn59niix-1226336628567. 'Sharing one state's bounty with weaker neighbours had served Australia well and needed to continue to ensure equivalent standards of living across the country, the report found.'
    '"States that are fiscally weaker at any given time must continue to have the capacity to provide substantially similar levels of services and infrastructure to their citizens," it said.
    Tasmanian Premier Lara Giddings welcomed the findings and hit out at the "self-interest and hypocrisy" of the larger states, while NSW Treasurer Mike Baird and his Victorian counterpart Kim Wells expressed disappointment at the outcome.'. Also in that ninemsn article it states that the report has basically rejected the floor proposal from wa , but has said its not desirable for a state to see continued GST cuts. Your treasurer has interpreted that as 'basically supporting a floor percentage'. Each to their own.
     
  4. DaftPunk

    DaftPunk Team Captain

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    Sorry about the formatting, iPhone and all!
     
  5. Max zero

    Max zero Premium Platinum

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    Sharing the bounty, no problems. But rewarding poor performance and punishing success? How exactly are the resource rich states meant to keep the gravy train going if they are given ZERO dollars to build and expand the infrastructure? Don't you realise that if resource rich states tanks EVERYONE suffers? Who is going to be writing the cheques?

    I notice you ignored a number of bolded points.

    As for the formatting, get the Tapatalk app. Makes it much easier to use BF on the iphone.
     
  6. Hill2Pav

    Hill2Pav Club Legend

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    Here's an idea South Australia and Tasmania start living within their means and stop using other states money to support their current lifestyle!
     
  7. DaftPunk

    DaftPunk Team Captain

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    Comparable capacities? So really no fundamental change will occur. You reckon after the SA government has chopped over 5000 public jobs and canceling major projects and having major departments not being able to stay within their reduced budgets (health!), that taking $1b out of SA's budget will give comparable capacities? Of course I support investment in growth assuring infrastructure , but I'm not as stupid to realize that most Perthites aren't thinking of a railway out north but a freeway down south.
     
  8. DaftPunk

    DaftPunk Team Captain

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    We're just living it up over here!!! Thanks for the money WA.... Sorry BHP*
     
  9. Hill2Pav

    Hill2Pav Club Legend

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    Maybe you can make cuts to your expenses by cancelling your planned football stadium for a start; how many millions of others states money would be saved; $500 million?
     
  10. The_Reaper

    The_Reaper Premium Gold

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    Funnily enough we are funding the Adelaide Oval redevelopment.
     
  11. Eagle87

    Eagle87 Premium Platinum

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    Yep, while we continue to use Subi ...

    Brilliant :thumbsu:

    EDIT: and don't we also pay an AFL levy on our Subi seats to help struggling clubs ... like Port?
     

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  12. maelcoluim

    maelcoluim All Australian

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    They had a referendum on NT statehood in the late 90's which was narrowly defeated, they were only guaranteed the same 2 senators IIRC, but they would of course have the advantage of greater independence in that the Feds couldn't repeal local laws.

    The requirement of 12 senators and 5 HoR members only applies to the original states, any new admissions may be admitted on a lower guaranteed minimum.
     
  13. fairdinkum

    fairdinkum Norm Smith Medallist

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  14. Eagle87

    Eagle87 Premium Platinum

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  15. DaftPunk

    DaftPunk Team Captain

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    SA stadiums haven't received any state funding in nearly 3 decades (western grandstand was funded through fed funding & debt). Through the $500m AAMI stadium will be decommisioned and SA will go from having 2 stadiums to 1.


    Thats a lifetime reduction in expenses. Well done SA.


    in 2010, SA cut 4,000 government jobs. Implemented massive cuts across a swag of departments. Rural hospitals were closed. revenue was bumped up across nearly every government charging sector.This was to save roughly $300m a year in the budget.

    http://www.abc.net.au/news/2010-09-16/jobs-pain-in-foleys-ninth-sa-budget/2263106

    In 2011, The government stated that the savings weren't enough. Instead of going into a surplus they were now going into a def to the tune of 300m (primarily because a lower than forecast GST distribution). 400 PS jobs were cut, SA lotteries sold. Economic stimulators such as first home buyers grants were slashed, major projects deffered and new taxes brought in.

    http://www.abc.net.au/local/stories/2011/06/08/3239020.htm

    http://www.adelaidenow.com.au/news/...lia-rural-sector/story-fn8x9piw-1226072478171




    Now lets look at WA.
    http://www.ourstatebudget.wa.gov.au/

    784m surplus tick, forecast 442m surplus next year tick

    Billions in extra services, subsidies (power), easy retention of triple A credit rating. Forecast for 4-5% growth for the next two years. Record infrastruture spend.






    Now you tell me you economic master, what would happne if you were to rip $1b out of SA, to put it into your lovely state.


    Now think of the consequences for that, and times it by 10 for Tassie and by 20 for the NT.


    BTW Abbott is just confirming he is a complete economic failure by backing a per capita distribution. It wasn't a per capita under howard who oversaw the original design. And a committee involving libs and economic advisors even said it was a stupid idea. It would create a multi billion dollar burden on the federal government through the extra funding the territory would require also. Not unlike him to oppose something though.
     
  16. DaftPunk

    DaftPunk Team Captain

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    Incompetent government perhaps? How long have you been talking about your precious $1b+ 'world class' stadium now? 10 years?
     
  17. Chops_a_must

    Chops_a_must Brownlow Medallist

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    Barnett's wishes would mean taking $2.2 billion out of the territory.

    It's different for the NT however, given the lack of ability to raise funds, without being a state.

    I think SA should be looking at other things than a new stadium though. There are bigger priorities.

    But in the NT, a lot of things are close to third world.
     
  18. DaftPunk

    DaftPunk Team Captain

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    AAMI stadium needed a major redevelopement. The stadium issue was huge in SA. It was either redevelope AAMI (which was seeing long term declines in crowds), build a new stadium ($1b) or redevelope Adelaide Oval ($500m) and sell AAMI (nett SANFL $100+m)


    The NT is a financial drain, but your only going to create more problems then you solve by taking the money out of there.
     
  19. Chops_a_must

    Chops_a_must Brownlow Medallist

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    How is that different to Subi?

    I do agree though that Barnett stuffed that up with his Monkey business.
     
  20. DaftPunk

    DaftPunk Team Captain

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    I wasn't comparing it to WA.


    I was arguing that to simply say 'you can't redevelope a stadium because your poor' doesn't reflect the true situation. It was either spend money on option 1, 2 or 3.
     
  21. Scotland

    Scotland Brownlow Medallist

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    You missed option 4: Stick with what you've got.
     
  22. Hill2Pav

    Hill2Pav Club Legend

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    That's because your state has been a basket case for decades and has continued to live beyond its means, and other states money.

    It would require states like your to start living within your means and stop living on other states money.

    SA expenses have increased by an annual rate of 6.9% per year

    http://www.cgc.gov.au/__data/assets/pdf_file/0012/23331/2012_Update_report.pdf

    Your state has been a net recipient of others states money from the GST distributions since its inception, your state has continued to increase expenses at an unsustainable during this period (6.9%) and will continue to receive other states money for the foreseeable future.

    Maybe your state wants to work out why the economic growth in your state is below average, your young people are leaving for elsewhere, and why you continue to think you deserve to hand your lifestyle supported by others?
     
  23. Hill2Pav

    Hill2Pav Club Legend

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    Option 4, doing nothing and stay at the current stadium and return the $500 million to the original states that earnt it.
     
  24. The_Reaper

    The_Reaper Premium Gold

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    Option 5, let the SANFL help fund the stadium by converting AAMI Stadium into housing.

    Why should they get a free ride?
     
  25. prattsta

    prattsta Premiership Player

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    Because they're in SA. Obviously.