$7bn GST top-up to win states

Original article by Simon Benson
The Australian – Page: 1 & 2 : 5-Jul-18

The Federal Government proposes to introduce a new model for the distribution of goods and services tax revenue which aims to ensure that no state territory will be disadvantaged. The reforms include the introduction of a GST floor, which will ensure that each state receives a minimum of $0.70 per person for each dollar of GST revenue from 2022. This will rise to $0.75 in 2024. The Government will also provide a funding boost totalling $A7bn to compensate states and territories for any loss of revenue during the six-year transition phase.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. PRODUCTIVITY COMMISSION

No state worse off in GST shake-up: PM

Original article by Phillip Coorey
The Australian Financial Review – Page: 3 : 3-Jul-18

The Federal Government will shortly release its response to the Productivity Commission’s report on the distribution of goods and services tax revenue. Prime Minister Malcolm Turnbull has stressed that no state will be disadvantaged by any change in the methodology for allocating GST revenue. The government is expected to compensate states for any loss of revenue during the transition to a new GST distribution formula; economist Saul Eslake says clarification is needed regarding the compensation plan.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. PRODUCTIVITY COMMISSION, VICTORIA. DEPT OF TREASURY AND FINANCE, AUSTRALIAN LABOR PARTY

GST stoush looms ahead of byelections

Original article by Andrew Tillett
The Australian Financial Review – Page: 11 : 31-May-18

Federal Treasurer Scott Morrison recently received the Productivity Commission’s final report on changes to the distribution of goods and services tax revenue. Prime Minister Malcolm Turnbull has told parliament that the report will be released prior to the five upcoming by-elections in late July. He also said the government will take its time in formulating a response to the report’s recommendations, and stressed that no state or territory will be disadvantaged by any changes to the GST system.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF WESTERN AUSTRALIA, CENTRE ALLIANCE

States suffer as PM’s pet projects prosper

Original article by David Uren
The Australian – Page: 2 : 22-May-18

Federal grants to the states for infrastructure projects have declined to their lowest point since 2013-14. Prime Minister Malcolm Turnbull has stated that the federal government should not be seen as an ATM for the states and territories on infrastructure, with his government preferring to put money in projects in which it has direct equity, such as Western Sydney Airport. Adrian Dwyer, the CEO of Infrastructure Partnerships Australia, contends that there is a considerable difference between direct and equity funding. He says more infrastructure spending is needed to address congestion in Australia’s cities.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, INFRASTRUCTURE PARTNERSHIPS AUSTRALIA, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT

PM splurges on projects to soothe WA’s anger over GST carve-up

Original article by Andrew Tillett
The Australian Financial Review – Page: 3 : 27-Apr-18

Prime Minister Malcolm Turnbull has offered to give Western Australia a $A187 million top-up goods and services tax payment. The money is to be spent on expanding or refurbishing three hospitals, while Turnbull is also expected to announce funding for extra train stations and a road bypass in outer Perth suburbs. The Liberal Party currently holds 11 of the 16 federal seats in WA, but five are held with a margin of less than seven per cent.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, LIBERAL PARTY OF AUSTRALIA

WA Lib leader issues political suicide GST warning to Turnbull

Original article by Brad Thompson
The Australian Financial Review – Page: 5 : 12-Jan-18

Western Australia’s Opposition Leader Mike Nahan is generally supportive of the Productivity Commission’s recommendations regarding the distribution of goods and services tax revenue. However, he has suggested that the Australian Capital Territory and the Northern Territory should be directly funded by the Federal Government, and GST revenue should be distributed solely to the states. Nahan also says any attempt by the Federal Government to make changes to the GST cannot succeed without the Australian Labor Party’s support.

CORPORATES
LIBERAL PARTY OF WESTERN AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, NORTHERN TERRITORY. DEPT OF THE CHIEF MINISTER

Fresh GST fight with states looms

Original article by Andrew Tillett
The Australian Financial Review – Page: 3 : 3-Jan-18

Federal Treasurer Scott Morrison has given the Productivity Commission more time to complete its review of how the goods and services tax is distributed among the states. The PC had been due to complete its inquiry by 31 January, but has now been given until 15 May. The delay is expected to particularly upset Western Australia, which has long contended that it loses out under the current GST distribution model. Morrison says the PC’s interim report into the GST has clearly shown the current system is "broken" and needs to be fixed.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. PRODUCTIVITY COMMISSION, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET

IPA advocates income tax power be given to states

Original article by Brad Thompson
The Australian Financial Review – Page: 12 : 12-Dec-17

The distribution of goods and services tax revenue between the states and territories continues to attract scrutiny. The Institute of Public Affairs has proposed the adoption of a system of "competitive federalism", whereby the states would be responsible for setting their own GST rate and retaining the revenue. IPA executive director John Roskam suggests that the states and territories could also be allowed to impose their own income taxes, but notes that they baulked at this when the idea was put forward by Prime Minister Malcolm Turnbull in 2016.

CORPORATES
INSTITUTE OF PUBLIC AFFAIRS LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION

PC report urges fed-state tax revamp

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 25-Oct-17

The Productivity Commission has released a report which notes that the federal government is responsible for raising 80 per cent of all tax revenue. The report, which is titled "Shifting the Dial", advocates giving the states greater power to raise revenue for the provision of government services instead of being so reliant on the federal government for funding. The report will be on the agenda when Treasurer Scott Morrison meets with his state and territory counterparts on 27 October.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF THE TREASURY, VICTORIA. DEPT OF TREASURY AND FINANCE, AUSTRALIAN LABOR PARTY

State GST backlash a headache for Turnbull

Original article by Andrew Burrell
The Australian – Page: 4 : 10-Oct-17

Western Australia could receive up to $A3.63 billion more in 2017-18 from goods and services tax payments if the Federal Government adopts changes recommended by the Productivity Commission. However, the other states would get less money if changes to the way GST revenue is distributed are adopted, with Queensland set to lose up to $A1.6 billion. Politicians from the states that would be negatively impacted have reacted angrily to the Commission’s recommendations.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FINANCE, TASMANIA. DEPT OF PREMIER AND CABINET, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, NORTHERN TERRITORY. DEPT OF THE TREASURY, NEW SOUTH WALES. THE TREASURY, LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY