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April 23rd, 2012 
FAKE NEWS for the Zionist agenda
The interim report recognises WA’s dwindling share of GST, confirming the state government’s fears that it could eventually lead to nothing being returned to the state.
WA is set to get back hundreds of millions of dollars in GST revenue with an interim report into how the tax is distributed appearing positive for the state.
Treasurer Christian Porter said on the comments made within the report there was no doubt WA could expect a much fairer share of the $51 billion pie in future years, although exactly what changes would be made to allow for that remained to be decided.
“What this report absolutely puts beyond issue now is that the present GST distribution [system] is terminal,” he said.
“This report is formally the first nail in the coffin of the existing system. That is a very important step.
“The question becomes how long before it’s formally [declared] deceased and when do we get a new system.”
The federal government-commissioned Goods and Services Tax Distribution Review is examining the decade-old system, which WA and Victoria in particular claim is no longer working.
The panel’s interim report does not made recommendations but suggests several reforms that it considers to be potentially appropriate. States will make a second round of submissions before a final report containing recommendations is released by the end of the year.
The interim report recognises WA’s dwindling share of GST, confirming the state government’s fears that it could eventually lead to nothing being returned to the state.
“Depending on the strength of the mining boom, it is conceivable that their relativity could reach zero in the medium to long‐term,” the report says.
The possible changes include ensuring a state’s allocation does not decline in raw terms, which Mr Porter said would have meant WA would not have lost $600 million this financial year and could effectively act as a floor, which the panel did not to appear to favour. The state government had argued for a floor of 75 cents in the dollar.
The panel also suggests creating methods to increase predictability and stability in the distribution of GST revenue, simplifying capital assessments and more transparent explanation of outcomes.
In a proposal that would specifically benefit WA, state spending on mining infrastructure and other related costs would be more adequately recognised.
WA also would benefit from the panel’s only recommendation for an immediate reform – reducing the penalty for increasing iron ore fines from 180 per cent to 60 per cent.
During the last state budget, WA increased its iron ore “fines” royalty rate from 5.625 per cent to 6.5 per cent from July 1 this year and to 7.5 per cent from July 1, 2013. The increases will generate $700 million in 2012-13 and a further $800 million per year by 2013-14.
The changes defied Commonwealth warnings that it would hold back funding from any state that moved to increase its mining royalty rates – which are ultimately paid for the federal government after it promised mining companies the MRRT would reduce by the same amount.
Mr Porter said he would immediately write to Federal Treasurer Wayne Swan requesting he implement the panel’s recommendation.
The most complex and substantial possible change highlighted in the panel’s report is a complete re-writing of the equalisation system, which is associated with the original purpose of the GST – to ensure all states can provide equal services such as education and health – and has resulted in states generating the most GST revenue subsiding poorer states such as Tasmania and the Northern Territory.
Changes could lead to a reduced emphasis on perfect equalisation, which would likely return more GST revue to WA, presently a donor state.
“Not everything that WA suggested should happen will happen,” Mr Porter said.
“[But] all the types of changes they’re suggesting – whether they’re small or large – are beneficial to WA.”
Treasurer Wayne Swan said a second interim report responding to additional terms of reference added in November 2011 would be released mid-year, followed by a final report at the end of the year.
“After the release of the final report, I will convene a meeting with state and territory treasurers to discuss the panel’s recommendations,” he said.
“While we understand that states and territories will naturally pursue their individual interests, the Gillard government will continue to act in the broader national interest to ensure a strong economy and high quality services for all Australians.”
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