Ou­trage over $1b GST grab

Herald Sun - - NEWS - TOM MINEAR

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.

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