Outrage over $1b GST grab
A RADICAL overhaul of the GST revenue system that would see Victoria’s portion slashed by almost $1 billion has been slammed by the state government.
The major changes to the GST formula, proposed by the Productivity Commission, have been prompted by complaints from Western Australia about their share of the cash carve-up.
But Victoria argues WA only has itself to blame because it predicted the steep drop-off of GST revenue after the mining boom and did nothing about it, instead spending up big in the hope that the rules would change in their favour.
The Victorian Government rejected the commission’s draft plan to alter the funding formula, arguing its proposals may actually make the system more complex and inefficient.
Victoria already pays more than its fair share to help other states and territories, getting back 93c in every dollar of GST it pays to the Commonwealth, which funds schools, hospitals and infrastructure.