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The mining boom has "blown up" the GST system, but Scott Morrison says that a new breakdown and funding increases totaling $ 5.2 billion over the next eight years will leave no state or worse-off territory
. According to the Treasurer, the federal government will ensure that by 2022 no state receives less than 70 cents per person per dollar of GST.
Funding will be unbound, which means governments will be able to spend as they plan to provide services in their state, including schools, hospitals, roads and railways.
Western Australia should be the only state with a relativity of less than 0.70 during the transition period. 19659002] "Larger states still subsidize small states, but not unreasonably as it happened because of how the formula worked previously," he told Sky News.
The Commonwealth could go it alone on the GST support of every state and territory by the end of the year.
They should receive GST payments of $ 67.3 billion in 2018-2019, reaching $ 112.25 billion, including top-up payments, in 2028 and $ 299.
GST is shared, known as horizontal fiscal equalization, has not been significantly changed since the introduction of the consumption tax in 2000.
The reference for HFE will be pbaded for eight years to a new standard that will ensure fiscal capacity of all states "The comparison of all states and territories with the economies of the two largest states will eliminate the effects of extreme circumstances, such as the mining boom, of the GST of Australia. Mr. Morrison said:
He said that the mining minerals boom "basically blew up the whole GST system" and that no one was at fault, but his job was to keep his hands on the GST. to ensure that it does not happen again. 19659002] In addition to moving to a new standard the government will put in place the new "floor" of 70 cents per person per GST dollar, below which the relativity of a state can not fall, from 2022 to 233
This will increase to 75 cents from 2024-2025. 19659002] The government rejected the recommendation of a productivity commission review to use an "average" figure to equalize payments, which, according to Morrison, would have left the smaller states behind .
"It would have been too costly, too much on other smaller states and territories."
"We needed something more feasible."
WA's share of the GST dropped to 30 cents per dollar per person due to mining boom,
During the transition to the new system, the federal government will provide short-term funding to ensure that no state will receive less 70 cents per person per GST dollar
First injection into the new system The GST distribution will be worth $ 600 million in 2021/22, with the second injection of $ 250 million in 2024/25 [19659002] Additional Commonwealth funding would then be indexed to grow permanently with GST collections. [19659002] State and Territory The Treasurers will meet in September to discuss the plan, with a final agreement expected by the end of 2018. [19659017]! Function (f, b, e, v, n, t, s)
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