Northern Territory Treasurer Nicole Manison
Territory Hit With $2 Billion GST Cut
Victor P Taffa
Northern Territory has been hit with $2 Billion revenue cut following the release of Goods and Services Tax (GST) updates at the Council on Federal Financial Relations (CFFR) in Canberra today.
Treasurer Nicole Manison said it is difficult to overstate the impact of these changes on the Territory with 50 % of our revenue coming from the GST.
“This is a massive blow for our Budget and unprecedented in the Territory’s history.” Treasurer Manison said.
“These cuts are roughly the equivalent of 5,000 teachers or nurses per year.”
“Over the next four years, around $2 Billion dollars in revenue will be cut.”
“Conditions we have inherited have created the perfect storm a combination of slowing population growth, a reduction in the GST relativity from 5.4 % to 4.7 % and a smaller GST pool combining to smash our share of the GST.” Treasurer Manison said.
“In an urgently called meeting with Federal Treasurer Scott Morrison today, I delivered a blunt assessment of the devastating effect this GST shortfall will have on the Territory budget.”
“He has taken those concerns on board and has agreed to continue working together.”
“This is a tough test for the Territory, but one this Government will meet head on, in partnership with business, industry and all Territorians.” Treasurer Manison said.
“GST changes come at a time when we are already facing considerable challenges the transition of INPEX to an operational phase, slow population growth, and a huge deficit left by the former Country Liberal Party (CLP) Government.”
“Gunner Government has promised to put jobs first and we will deliver on that promise. This Budget will create and support jobs for Territorians and deliver on our election commitments.”
“We will continue to invest heavily in infrastructure, support jobs, encourage private investment and deliver crucial core services to Territorians.” Treasurer Manison said.
Estimated reductions in GST over the next four years are:
- 2017/18 $385 Million;
- 2018/19 $434 Million;
- 2019/20 $533 Million;
- 2020/21 $570 Million.
Northern Territory Budget will be delivered on Tuesday 2 May 2017.