ACT Chief Minister Andrew Barr goes into Friday's meeting of state and territory leaders hoping for a freeze on the GST carve-up, an option that would not only save Western Australia from big losses but avoid a $130 million hole in the ACT's budget.
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The ACT is set to lose $130 million in GST revenue in the coming budget, with its share down from an expected $1.17 billion to $1.04 billion. The ACT is set to get 1.82 per cent of the national GST revenue, the lowest share in eight years. This year, it received 2.04 per cent.
The loss will punch a still bigger hole in the 2015-16 deficit, already forecast at $250 million.
Western Australia has been pushing for a change in the Commonwealth Grants Commission formula for dividing the GST, a push strenuously resisted by the other states. A freeze on the current carve-up would give Western Australia more time and save the ACT's budget for another year.
But Mr Barr said he didn't support a change in the method of calculating the GST distribution, even if it meant the ACT lost out this time. His biggest concern going into Friday's meeting would be any move to change the formula, which was usually beneficial to the ACT.
Mr Barr said he would push for incentive payments for states and territories to pursue tax reform to get
He would also push for a second round of the Commonwealth's asset recycling scheme, which offers incentives for states to sell assets. The ACT is the first and only jurisdiction to sign up to the scheme so far, earmarking $400 million of buildings for sale, for which the Commonwealth will contribute $60 million in bonuses - money that is going towards the city's new tram line.
Mr Barr said heCouncil of Australian Governments