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 GST plan to cut $60m from ACT 

GST plan to cut $60m from ACT

30 Sep, 2009 09:43 AM
The ACT stands to lose up to $60million a year under proposed changes to how the nation's GST revenue pool is distributed, threatening to plunge the territory budget further into deficit.

The Commonwealth Grants Commission, an independent body that determines what percentage of the GST pool each state and territory receives, believes it would be fairer to allocate the revenue based, in part, on a jurisdiction's population growth rate, arguing their infrastructure needs would be greater.

The changes would significantly benefit Queensland, which NSW Treasury predicts would receive an additional $670 million in 2010-11 if the change was introduced.

However, the ACT, NSW and the Northern Territory stand to lose billions in combined GST revenue in the next few years, prompting a public campaign by the NSW Government this week to protest against the change.

For more, pick up a copy of today's Canberra Times

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I heard that a bit more money is going to be directed towards queensland, and it's about time. All the country's money goes to NSW and SA, and it shows. Drive over the border from QLD to NT or NSW, and suddenly the roads are of higher quality. It's about time some of the money got directed elsewhere.
Posted by Mark, 30/09/2009 10:46:29 AM
Mark...Queensland gets more money than it should and NSW has been propping up QLD for years,and they want more,Every hospital in Brisbane has been rebuilt,do you see that in Sydney,and as for the roads,well its a huge state,with a small population..But Krudd is the Prime Minister for Queensland I guess,so what do we expect
Posted by Charity Box, 30/09/2009 11:53:27 AM
Mark, ever driven the Pacific Hway from the Gold Coast to northern NSW, the Qld side have beautiful multi-lane roads while in NSW it's mostly still single lane and potholes! Now this might just be because of the incompetent Rees/Iemma/Carr governments, but then Qld has had incompetent Bligh/Beattie governments so I doubt it, the money handout is just not following the population.
Posted by ex-Baron-of-Bruce, 30/09/2009 12:11:14 PM
For a Federal Labour Govt. who have never earnt a razoo - DEFICIT - seems the juggling act. Smile & grins from a 'smartie' Wayne Swan who 'suddenly found' $5billion in Govt tax wastage, if compared to Private Enterprise it would 'find' 10 times that amount in wastage. They have themslves on as 'conservative fiscals'. While the Aging ACT residents take another blow to the services to 'fix Rudd's county'- funny eh! double standards or 'fairness'. So what does a small population of Tasmania get from GST- zilch? Is this a leak from the new broarder, fairer Henry Tax Review? We will fix them- everyone 'goes on strike' and buys private secondhand-new goods that attract NO GST. Take that Rudd/Swan and smoke it since your so clever with DEFICIT. Labour is always a planless - hit and run- dropkick when making money. Rudd boasts falsely that 'reforms' were not in the 11 yrs of Howard /Costello, but they paid out the debt, and all the new McDonald's, KFC's and commercial buildings are capitalised for a decade of new growth. Rudd can't see past the end of his glasses when companies 'float' for capital and most 'losses' are still Profit reduced. Tiny little brain. Clinton's breakfast con-job.
Posted by adaptapensioner.com, 30/09/2009 1:15:30 PM
You have all missed the real reason why Queensland should receive a bigger share on the GST. It's the population movement from NSW, ACT, Vic to Queensland. As for the road from the Gold Coast into Northern NSW, it was the NSW government that pulled out and refused to pay their share leaving a major motorway half finished.
Posted by spike, 30/09/2009 1:41:58 PM
For those that do not know how the GST revenue distribution works here is a summary - the Commonweatlh Grants Commission undertakes a review every few years of their distribution calculation. The methodology is designed to ensure an equitable distribution between States based on a number of characteristics. This time they are including population growth which will change the distribution. This review and methodology is outside the taxation reform currently being implemented with regards to income tax, etc and is not driven by the current Federal government but by careful and unbiased reviews of how best to spread the GST revenue. The ACT Government needs to provide a reason for people to move to the ACT, thus having an impact on the proportion of GST revenue acquired. Anyone can to the CGC's website and read their reviews and annual reports. It is no State secret how the funds are distributed!
Posted by kazbo, 30/09/2009 2:33:26 PM
If the infrastructure is already inadequate in a State/Territory, then that should be brought up to scratch first and then (working from a fair and equal starting point), divide money as per population & population growth.
Posted by Mary, 30/09/2009 4:53:27 PM
adaptapensioner its way past your bedtime you shouldn't be up so late making silly comments.
Posted by arod, 30/09/2009 6:06:00 PM
Correct me if I am wrong but, are the Voting public of the A.C.T not their own worst enemy.? By always voting Labor don't we, the A.C.T, just put the noose around our own necks. What would happen if the ACT became a swinging electorate, wouldn't we be targeted for sweetheart deals like our neighbour Eden- Monaro. Surely we could become Voter Smart, instead of forever being taken for granted, then perhaps Mr Rudd would have to offer 60 million carrots. Don't tell me Mr Rudd doe's not have the ear of the Commmonwealth Grants Commission, in times of need.
Posted by Pomm, 30/09/2009 6:08:07 PM
Canberra seems to be full of proverbial whingers.. Canberran's seem to have (or are pretty close to) having the best work/life balance in the country. Party because of poor management from EL1 and EL2's around managing the performance of their staff. $60m is bugger all in the greater scheme of things..really. If there really are serious budget issues in the ACT, why not take a look at the ACT public servant pay packets for starters..
Posted by u3240456, 1/10/2009 3:44:24 AM
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