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Victoria Treasurer Michael O’Brien

Commonwealth Slashes Victoria’s Share Of The GST

Victor P Taffa

Victorians are once again set to receive an unfair share of the annual carve up of the Goods and Services Tax (GST), with Victoria’s share of GST declining again, Treasurer Michael O’Brien said today.

“In 2013-14 Victoria will only receive 90 cents in each dollar of GST paid, down from over 92 cents this year. This cut will cost Victoria $207 Million in lost revenue.” Mr. O’Brien said.

“In total, Victorians are around $1.2 Billion worse off as a result of the Commonwealth Government’s unfair grants carve up.”

“If Victorians simply received back the GST they paid, Victorians would be $203 per person better off than they are under the Commonwealth Government’s unfair system.”

Victoria remains committed to working towards the GST being distributed on an equal per capita share, as suggested by the Brumby-Greiner review.

Victoria is eager to work with the Commonwealth and other jurisdictions to progress Review recommendations that will improve the current system.

“I look forward to arguing on behalf of all Victorians at the upcoming Treasurers’ conference in April to make sure that Victorians are getting the funding they deserve from the Commonwealth Government.” Mr. O’Brien said.

Today’s announcement by the Commonwealth has a negligible impact on the 2013-14 Budget because the Department of Treasury and Finance has forecast this reduction based on the Commonwealth’s flawed system.

“Part of the reason for the decline in GST share is due to Commonwealth grants for the Regional Rail Link project. This is just one example of how the Commonwealth gives with one hand and then takes with the other.” Mr. O’Brien said.

“The independent Brumby-Greiner Review recommended the Commonwealth take immediate action to correct the inequitable outcome and the Commonwealth Treasurer should act on the advice of his own expert panel.”

Victoria, along with the other states, needs a stable share of funding based on population to allow us to properly plan and budget for infrastructure and essential services.


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